Let’s talk about Overflow. You’ve probably heard me mention it before on the podcast, but today, we’re deep diving into what the hell it actually is, how it works, and why it’s not just “Profit First with a cute name.”
Because no, this is not another cookie-cutter finance system that tells you to squirrel away 1% of your revenue, and call it success. Overflow is a strategy. A living, breathing financial structure that works with the way money actually flows through your business, not against it.
So WTF is Overflow?
In simple terms, Overflow is the money that’s left after you’ve:
- Paid your business expenses
- Paid yourself (a proper, agreed amount – not “whatever’s left”)
- Paid your taxes
- Contributed to savings or financial goals
It’s the surplus. It’s your buffer. It’s the money that lets you breathe. The purpose of Overflow is to create financial stability despite inconsistent revenue (because self-employed life). Most of us aren’t living that neat, salaried life anymore. Overflow bridges that gap.
It means you can have a high cash month, and still not panic the next time things are slow, because you’ve planned for it. You’ve saved for it. You’ve structured for it.
And no, overflow is not Profit First.
Let’s address that straight up. Profit First is built around percentages. It splits your income into multiple accounts based on set ratios which, cool in theory, but in practice? Not so much. Because your bills are not a percentage of your revenue. Your rent is your rent. Your software fees are what they are. Telling someone to “just put 30% aside for expenses” doesn’t help when your actual expenses are £2,000 and your revenue was £5,500 that month.
Overflow flips that. Instead of starting with percentages, you start with what you need. How much do you need to take home every month? Great. That’s your baseline. Your business then becomes responsible for generating that, and your Overflow builds on top of it.
Do you need to track every transaction?
Yes. I know, sorry. But also, it’s not as scary as it sounds. You’re not becoming an anxious bookkeeper overnight. You’re just learning how to use your numbers like a CEO.
Emotional shame in money comes from vagueness. Clarity comes from data. When you know where your money is going, what your profit margins are, and what investments actually give you a return, you’re no longer guessing. You’re choosing.
And we don’t need complicated accounting software or spreadsheets with 12 tabs. My cashflow tracker is literally one Google Sheet tab. One. And it does everything you need to know to track revenue, expenses, pay yourself consistently, and calculate your Overflow.
What if your revenue swings?
It will, it does, that’s business. And Overflow is built exactly for that. You don’t have to have consistent income. You just need consistent habits. And high-cash months don’t mean a spending spree – they mean opportunity. Save the difference, and fund your own financial freedom.
Whether you’re launching, riding seasonal waves, or just having an unpredictable month (hello summer holidays), Overflow means you can stay calm and still pay yourself like clockwork. And that’s what makes it sustainable.
Can you start using overflow if you’re in debt?
Yes, yes, yes. In fact, I recommend it. Building Overflow before you throw everything at debt gives you breathing room. It means you won’t end up back in debt the second something unexpected hits. Safety net first, then debt. That’s the move.
Overflow isn’t about perfection. It’s not about “being good with money” (although it will help you be better!) or doing finance the way a bookkeeper tells you to. It’s about understanding your numbers enough to run your business with confidence.
If you want support building your Overflow and finally paying yourself properly, Cashflow Confident is where we do the damn thing. Doors are open – come and join.
Until next time,
Emilie x
More on this subject on my podcast!
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