95% of Business Owners DO NOT Do This

95% of Business Owners DO NOT Do This. This money is not your money. You start thinking that this money is yours, you won't have a business anymore. Once the business starts really, really, really doing well where you can take some distributions on top of your salary, do it exactly like this. Build a capital account, take the money for the distribution, put it into the capital account. Now I told you all the rules on how I pick what I take for a distribution. If you have partners, make sure you go over those rules with them. If the distribution is $100 and you have a 50/50 partner, what does that mean? Each of you get $50. Take it from here, bring it up to the top, keep it in your capital account, and then use this account for some personal expenses if you want to. Don't do that in here if you don't need to. Try to write it off in here for tax reasons. And then anything left over in this account should be used to make you more money. If you can master the fact of taking your distributions, using them to make more money, and then using your salary to pay your normal bills, I can assure you that you will be very, very financially successful and you will be way ahead of 90% of the population. That's very valuable what he's saying, but it also depends on where you are in business. I'll tell you right now, I couldn't save a penny for a very, very, very, very, very long time. In the early days of business, it's not about saving money, it's about not spending money on things that you don't need and stupid things that are not going to make any sense in your life. It's about reinvesting that money. Now, although someone might be like, well, you're not saving any money. Okay, look, I'm not saying you can't save some money. You want to save a little bit here and there, fine. But you're reinvesting in something that's going to make you a lot of money. You know, you don't have to necessarily be heavy, heavy liquid in your bank account because money in a bank does nothing for you. But having that liquidity in your business is where it's at. So you can save, but I would make sure, you know, you use everything you can to reinvest in the business to grow the business.