![]() ![]() I now top up as much as I can from the registered accounts and, in the next few years, would probably allocate more for the mid-term/travel/leisure account. I manage this "kind of like" my investment portfolio (doing 90% stock / 10% bonds). BY MIKE MICHALOWICZ Figure 7: Mike’s Account Setup. If somehow a transaction seems scary, I double-think everything before making any decision. Figure 3: Profit First Assessment Form Figure 4: Target Allocation Percentages (TAPs) BY MIKE MICHALOWICZ Figure 5: Completed Instant Assessment for Law Firm Figure 6: Task Management List. After all my investments and savings are distributed, I focus on living the month with a friendly budget.I operate every month with a tight but enough budget on my TD account, avoiding the temptation of having (and seeing) more funds every day sitting there. I feel I have more control of my budgeting and my income. 2020 allowances of TFSA (6000) and RRSP (18% on my 2019 income) combined would be at that level and I'm young enough to top these up with this change. These percentages are adjusted over time, so that profit increases from say 1 to 10 over 2 years, and operating expenses decrease from 65 to 45, for example. This money transfer takes place before calculating any expenses. ![]() Businesses take a percentage of sales and store them in profit first accounts. Next year I intend to move 10% from the 65 to the 20 of the Long term Savings. Profit First does the same thing, but uses bank accounts instead of envelopes, allocating income across them in specific percentages. They retained earnings and reinvested them in increasing their capabilities, first and foremost in the employees who helped make firms more competitive. The Profit First Method solves this problem. From Tangerine, I use to fund the respective Questrade accounts. Zo zeggen we dat dit de ideale percentages zijn voor een eenmanszaak met 100. ![]() I'm impressed with how much available funds I had for my TFSA and RRSP after doing this. De ‘standaard’ Profit First percentages In het boek geven we ideale percentages voor bedrijven met een bepaalde omvang. Although the system is known as Profit First, I would call my use of it now to be more "Investment/Retirement/Savings First" and it damn works. Each time a single dollar lands into my chequing, I do a split across the different accounts. The first "indirect" result is how it shaped my mindset. ![]()
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