How are YOU paying yourself?
As the title says: How are you paying yourself?
Do you take a flat % of what's left over?
Salary plus bonuses?
Or the pirate method: everything left over after the Bill's are paid is yours?
Personally I find that giving myself a straight % of all incoming $ keeps me hungry and motivated to do better and more. I dont want a flat salary as I feel I would get comfortable and lazy.
#5 Medium-Term Rentals Contributor
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#5 Medium-Term Rentals Contributor
- Lender
- Youngstown, OH
As of right now, my REI money is kept in a separate account from my W-2 money. The account is ONLY for REI income and expenses. I haven't started paying myself yet.
This is highly dependent on one's goals and situation.
Personally, I pay myself a flat salary that fits my budget. Anything I make above that is my "play money" that I use to invest. It's enabled me to buy 21 rentals in the last three years, 19 of those in the past 18 months. If I have a lean year, my lifestyle stays the same and I just slow down on investing.
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#2 Tax, SDIRAs & Cost Segregation Contributor
- CPA, CFP®, PFS
- Florida
Originally posted by @Bill Kramer:As the title says: How are you paying yourself?
Do you take a flat % of what's left over?
Salary plus bonuses?
Or the pirate method: everything left over after the Bill's are paid is yours?
Personally I find that giving myself a straight % of all incoming $ keeps me hungry and motivated to do better and more. I dont want a flat salary as I feel I would get comfortable and lazy.
FYI,
Just so you know, you can’t treat the money you take out as salary if you don’t have S Corp or C-Corp. It has to be distributions. Salary is taxable, distribution is not.
