From Feast or Famine to Steady Pay: How Self-Employed Practitioners Can Pay Themselves Every Two Weeks
Being your own boss is rewarding, but it often comes with unpredictable income. One month you are flush with cash, the next you are wondering how to cover bills. This “feast or famine” cycle creates stress and makes it hard to plan ahead for both your personal life and your business.
The good news is you can create a system that pays you a regular, reliable paycheque on your personal side, even when your work income ebbs and flows. This approach incorporates elements of the Plan-Ahead Method™ developed by Kelsa Dickey and the Financial Coach Academy® and is also inspired by the Profit First framework by Mike Michalowicz, adapted here for self-employed practitioners.
1. Separate Your Business and Personal Money
Open a dedicated chequing account for your business and have all revenue deposited there.
Why it matters: Holding all your money in one account makes it impossible to know what is available for bills, purchases, taxes, and your own pay. It also prevents that “money in the account = money to spend” mindset.
Pro tip: Open separate bank accounts for taxes, owner pay, and operating expenses. You might even hold the tax account at a different bank so it is out of sight, out of mind.
2. Decide Your Percentages Up Front
Instead of guessing how much to pay yourself, assign a percentage of every dollar of income to key categories. Percentages vary depending on the characteristics of the business, so adjust to your reality. Here is an example:
Income Tax Account: 22%
Sales Tax Account: 13%
Business Expenses: 10%
Owner Pay: 55%
Every time client revenue arrives (if large chunks) or every 1–2 weeks, add up the deposits and immediately move these percentages to their matching accounts. This idea draws on the principles of Profit First and the Plan-Ahead Method™.
3. Fund Your Owner Pay Account
Your Owner Pay account is where your personal paycheque comes from. After each deposit, transfer the owner pay percentage into this account and leave it untouched until your scheduled “payday.”
During higher-income periods you will move more money into your Owner Pay account, and in slower periods you will move less, always based on that percentage of revenue coming in. Over time, the natural ups and downs in this account help keep your personal paycheque steady. Some months you will put more into this account than you need for your paycheque; other months you will put in less, but the surplus built during stronger income periods will make up the difference.
4. Create Your Personal Paycheque
Choose fixed pay dates, such as the 1st and 15th or every second Friday. On each date, move your planned paycheque from the Owner Pay account to your personal bank account. Because taxes, expenses, and sales tax are already set aside, you can pay yourself consistently, even when your business income fluctuates.
5. Review and Adjust Quarterly
Every few months, revisit your percentages and targets:
Are expenses or tax obligations changing?
Is your owner’s pay level sustainable?
Do you need to tweak the allocations?
Regular check-ins ensure your system grows with your business.
The Payoff
With this approach, you move from panic to peace:
Predictable income for personal bills and goals
Less stress about slow months or tax season
Confidence to plan vacations or time off
Ready for Steady Pay?
If you are tired of the feast or famine roller coaster, you do not have to figure it out alone. Book a Find the Light Session to create a personalized money plan and start paying yourself consistently every two weeks.
