[Niharika]

You mentioned expenses but not taxes, assuming you’ve accounted for those in expenses, then I’ll echo the commenter above regarding, long term do you see this business as your path to coast fire?

Or you’re thinking to maximize profit and get out by the time you retire?

Sounds like you’re early enough in the journey that you may not know the answer but thinking in terms of getting paid for the time is a good start.

Because you sound like you’re spending a bunch of time on this and presumably then missing out on some life experiences/slower growth in your f/t job potentially.

So having a goal around having the same effective pay scale as your f/t Job would be a good next goal.

[Christyna]

I would have 3 business accounts- spending, retained earnings (savings), and investments.

The retained earnings is for taxes and larger capital expenses.

[Matthew]

Usually when a business starts out, all the profits should go back into the business whenever possible whether investing in it or building up an emergency fund so it can survive an economic downturn.

Only once you get it to a good enough size can you depend on it.

[Joe]

Once you start making profits, your biggest expense will be taxes. Please read or listen to Tax Free Wealth on youtube.

Also, business losses can offset your w2 income, so you can use that to your advantage.

[Valerie]

If there is some left over each month, I would start by taking that overage and putting it into a Money Market Account (MMA).

Huntington Bank offers 5.38% and Wells Fargo WMPXX pays 4.91% and you can put $ in and take it out as often as you need to with no fees.

[Heather]

Are you paying yourself yet? Start by making sure it’s sustainable and able to pay you a livable wage.

If you’re not there yet, it needs to be factored into the game plan as soon as possible.

Then start paying yourself a wage and ensure you’re paid back for your equity contributions.

How is your business structured (llc/sole prop)? That would help guide next steps.

[Author]

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