Paying yourself as a business owner can feel like a guessing game. Whether you’re a coach, creative, or online service provider, you deserve a consistent salary you can rely on, not just what’s left after bills.
In this guide, I’ll show you how to calculate what to pay yourself, why treating your salary as a business expense changes everything, and how to finally move from feast-and-famine to funding your actual life.
Benchmarks 🪜 | Business Owner Salary Goals That Actually Make Sense
So many business owners chase goals that sound shiny “£10k months” or “six-figure years” without stopping to ask: what does that number actually do for me?
Your life ≠ their life.
Maybe you need six figures to live comfortably in London with two kids. Maybe £4k/month would fund slow mornings and spontaneous city breaks. Instead of plucking a number off Instagram, build your own ladder of goals.
Ask yourself:
- Do I want to replace my old salary?
- Do I want to afford a new sofa without sabotaging my owner’s pay?
- Do I want to save for maternity leave?
- Do I want to pay for my degree?
Those are the rungs on your ladder, each step leads you closer to your big, long-term financial goals.
And if right now it feels like there’s no room to dream beyond “just paying the bills”? Keep reading.
Scarcity Mindset 💭 | Why Business Owners Struggle to Pay Themselves Consistently
Scarcity isn’t about how much you actually earn. It’s the belief that there’s never enough, not enough clients, not enough time, not enough money.
A millionaire can have a scarcity mindset. Because it’s not about the bank balance, it’s about the story you tell yourself.
Ever noticed how, when money’s tight, you suddenly pull it together? That’s called the focus dividend. Your brain locks onto survival, and you make it happen. But when the urgency disappears, so does that energy.
To grow sustainably, you’ve got to shift from survive mode to fund-the-damn-life mode. Not just covering bills, but paying for joy, comfort, and play.
How to Work Out What to Pay Yourself 💰 (Step-by-Step Example)
No more guessing. No more plucking numbers out of thin air. Here’s the formula:
You need to know four numbers:
- Your personal living expenses.
- Your business expenses.
- Your tax obligations.
- Your ideal monthly salary (owner’s pay).
Example:
- Current owner’s pay: £2,000/month
- Business expenses: £1,000/month + £10,000 annual costs
- Total (personal + business): ~£46,000/year
But if you only make £46k, you’re screwed at tax season. Factor in ~20% tax, and the revenue goal jumps to £57,000/year.
Want to increase your owner’s pay to £3,000/month? That pushes the revenue target closer to £72k–£75k/year.
From there, you reverse engineer:
- What offers and pricing will get you there?
- How many sales do you need, based on your conversion rates?
- What marketing activity moves the needle?
This isn’t about wishing for £10k months. It’s about knowing your revenue goals as a business owner and creating a realistic plan to hit them.
Treat Your Owner’s Pay Like an Expense 🧾 | Paying Yourself First as a Business Owner
Here’s the mindset shift: your salary is a non-negotiable expense, not a bonus.
You wouldn’t debate paying your Canva subscription. You wouldn’t “wait until the money’s there” to pay your VA. Those are locked in. Your salary deserves the same commitment.
When you treat owner’s pay like a monthly expense, you:
- Create predictability.
- Know exactly what’s going out.
- Make it easier to figure out what must come in.
Most business owners do it backwards: income → expenses → leftovers. That’s how you end up in feast-or-famine.
Instead: salary → expenses → revenue target.
Pay yourself on purpose, not just when there’s money left.
Fund. Your. Damn. Life.
You can’t feel safe in your business, or truly enjoy the lifestyle you’re building, if you’re not paying yourself properly.
Calculate your number. Commit to paying it like any other expense. Build your revenue goals around it.
That’s how you stop living on scraps and start running a business that funds your damn life.
— Emilie x
FAQs on Paying Yourself as a Business Owner
How much should I pay myself as a small business owner in the UK?
It depends on your lifestyle costs, business expenses, and tax obligations. Reverse-engineer your revenue goals so your salary is consistent and sustainable.
Should I pay myself a salary or just take dividends?
If you’re a limited company, dividends can be tax-efficient, but most self-employed and sole traders pay themselves via owner’s pay (regular transfers). Consistency matters more than the method.
How do I pay myself if my income is unpredictable?
Treat your salary like a fixed expense. Use an overflow account or buffer to smooth out fluctuating months so your pay remains stable.
What’s the “pay yourself first” strategy?
It’s when you prioritise your salary before expenses, rather than waiting to see what’s left. This ensures you always pay yourself and keeps your lifestyle protected.
Want more? 🎯
This post is just the starting point. Inside Cashflow Confident, I’ll walk you step by step through building a money flow that actually works:
- Setting your owner’s pay so you always have a consistent salary.
- Planning for tax, expenses, and savings without panic.
- Creating a business that funds your life, not just the bills.
If you’re tired of paying yourself “whatever’s left” and you want a clear, repeatable system to pay yourself properly every month? Cashflow Confident is where you’ll get it.
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