As high-achieving women, we’re often juggling career aspirations, family responsibilities, personal growth, and, of course, our financial health. It’s easy to feel overwhelmed when it comes to managing money while balancing everything else, but I want you to know—it doesn’t have to be that way. Today, I’m going to introduce you to a financial strategy that can help you take control of your finances while still allowing room for self-care and enjoyment.
Meet Your New Financial BFF: The Profit First Method!
The Profit First method came into my life at a crucial time when I needed to understand the significance of paying myself first. Initially introduced to me for my then business, Royal Allure Beauty Bar, it not only helped me stay afloat but also enabled me to run a profitable skincare venture. I soon realized my issue wasn’t a lack of income but rather a problem with money management. Adopting this system for both my business and personal finances has been a transformative experience, to say the least! I’ll gladly share Mike Michalowicz’s Profit First Method with anyone who wants to listen.
Meet the Profit First method, your new financial BFF.
If you’ve ever found yourself scrambling to pay bills or feeling like your money is slipping through your fingers, this simple yet effective method can change that. It’s designed to ensure you’re not only covering your needs but also giving yourself space to enjoy life, invest in your future, and ultimately thrive financially.
What is the Profit First Method?
The Profit First method flips traditional money management on its head. Normally, we think of income minus expenses equals profit. But this method shifts the focus: Income minus Profit equals expenses. What this means is that you’re prioritizing your goals—savings, personal spending, and debt repayment—before everything else. It’s an empowering way to ensure you’re taking care of yourself while maintaining healthy financial habits.
This system divides your income into different categories, each with a specific purpose, so you always know where your money is going. For women like us—ambitious, driven, and often navigating a busy schedule—this system helps simplify the chaos.
Why Should You Use the Profit First Method?
As a woman working toward a balanced and fulfilling life, using this method helps you to:
- Avoid financial stress by ensuring bills and essentials are covered.
- Create space for self-care and joy through intentional personal spending.
- Build a savings cushion to support your long-term goals.
- Pay down debt while still allowing for life’s pleasures—like a much-needed spa day or a fun Saturday shopping trip.
It’s not about restriction—it’s about freedom. Freedom from the stress of financial uncertainty, and freedom to prioritize what matters most to you.
How to Get Started with the Profit First Method
Let’s break this down into an easy-to-follow, actionable plan. The best part? You can start right away, no matter where you’re at with your finances.
Step 1: Set Up Separate Accounts
To start, you’ll need five separate accounts, each with a specific purpose. These are:
- Income Account – Where all your income flows in before being distributed.
- Recurring Payments (Bills) – This account is used exclusively for paying your bills (rent/mortgage, utilities, etc.).
- Vault (Savings) – A place for your savings, emergencies, and future investments.
- Day-to-Day Purchases (Personal Spending) – Your fun money! For groceries, personal care, feminine products, Saturday shopping, etc.
- Debt Repayment/Savings – For paying down debt or saving toward bigger goals.
You can set these accounts up at your bank or use a budgeting app that allows you to separate funds easily.
Step 2: Allocate Your Income
Once your accounts are set up, the next step is to decide how to distribute your income. Based on the Profit First method, here’s a breakdown you can follow:
- 60% for Recurring Payments (Bills): Covering your essentials.
- 15% for Vault (Savings): Building your financial cushion.
- 15% for Day-to-Day Purchases (Personal Spending): Guilt-free spending on your needs and self-care.
- 10% for Debt Repayment/Savings: Contributing toward debt or future goals (like investing or major purchases).
For example, if you’re bringing in $1,000 this week:
- $600 goes into your Recurring Payments account.
- $150 goes into your Vault (Savings) account.
- $150 goes into your Day-to-Day Purchases account.
- $100 goes toward Debt Repayment or additional savings.
Step 3: Make Weekly Transfers
Every week, distribute your income into the appropriate accounts. Let’s say you have $484.36 in your income account:
- $290.62 will go into Recurring Payments to cover bills.
- $72.65 will go into your Vault (Savings) for future goals.
- $72.65 will go into Day-to-Day Purchases for personal spending, groceries, or a little treat for yourself.
- $48.44 will go toward Debt Repayment or additional savings.
By transferring money this way, you’re ensuring that your essential expenses are covered, you’re saving consistently, and most importantly—you’re giving yourself permission to spend on yourself without guilt.
Why This Works for High-Achieving Women
We lead busy lives, often striving for excellence in everything we do. With so much going on, money management can feel like just another stressor. But by using this method, you’re simplifying your financial life while prioritizing you—something we often neglect in our pursuit of success.
This method not only gives you structure but also allows flexibility. Want to spend a little more on a skincare haul or treat yourself to a relaxing day? That’s what your Day-to-Day account is for. Looking to build a business, invest in your future, or create a safety net for yourself? Your Vault and Debt Repayment accounts will keep you moving toward those long-term goals.
You don’t have to choose between today and tomorrow. With this approach, you can enjoy your life now while also securing your financial future.
Setting The Foundation on Your Financial Journey
Money is often a sensitive topic, especially for women who are navigating big responsibilities and goals. I want you to know that learning how to manage money with intention and care isn’t just about paying bills—it’s about creating the life you truly want.
You deserve to feel empowered, not just in your career or relationships, but in your financial decisions too. The Profit First method is your tool for taking control, creating space for the things that bring you joy, and building a secure future that aligns with your goals.
Remember, financial freedom isn’t a distant dream—it’s something you can achieve by taking small, consistent steps each day. By practicing these healthy money management skills, you’re investing in yourself and your well-being.
Here’s to living a softer, more intentional life, where financial stress is a thing of the past and you’re free to enjoy the fruits of your hard work.
XOXO,
Amber Danaye
