How much of your profits should you invest back in the business?

[Allie Bloyd]

Hi Everyone,

I was curious as to what you thought. How much of your profits do you invest back into the business? I read a book that says you should invest profits in 6 buckets:

1. Taxes

2. Growth Capital

3. Directly into the business

4. Personal Savings and Retirement (15%)

5. Daily living and bills (percentage depends on family size)

6. Fun money to reward yourself (5%)

This book preaches leveraging other peoples money to finance your flips so investing all the profits into your next deal is not in line with his strategy, although I'm sure this is an option as well. Interested to see what you all do with your profits to continue growing the business, pay your bills and have a little fun every now and then.

Thanks!

Allie