Creating A Succesful Personal Training Business Part 9: Setting Up Your Personal And Business Finances

Business and Personal Finance in Personal Training

Now it may be wise to have the first thing you do, as quickly as possible, is have a 6-month emergency fund for all potential business and personal overhead! I know it’s tough, but you should spend as little money as possible on any unnecessary goods or services until you have this safety net. 

Next, pay down all medium and high-interest debt as quickly as possible. I like to have a 75% savings rate, but anywhere above 50% puts you massively ahead of the game. Just make sure every purchase has a unique return on investment that objectively betters your life! Having a high liquid cash reserve is very important to help smooth the rough seas that life can throw at you! It can also keep you out of debt, and allow you to have more personal freedom to live a life that makes you happy!

Now as an independent business owner you have access to the large tax benefits of being a sole proprietor. Keep in mind that the IRS doesn't expect most businesses to make a profit for 3 years, and a company like Amazon never claims a profit; they just reinvest back into the business. 

I am not a tax accountant, but utilizing the write-offs available to the independent business owner can skyrocket your net income by extraordinary amounts. If the net income of a full-time $100,000 a year job is around $5500 a month after taxes and government takeaways, then if you gross $9,000 a month as a business how can you reinvest back in your business to avoid getting unfairly taxed? 

Could you write off a commercial vehicle?

Could you invest substantial amounts of income in an IRA to compound in interest at 8% over a 20 year period - leaving you with millions?

Could you fund your future children’s college using a 528 plan?

Could you hire a marketing specialist or business consultant to help you grow and expand?

Could you reinvest back into real estate and use that to create passive income?

Do you teach any other kinds of physical activities where you may need equipment?

Certifications?

Business trips?

A home office?

Working materials for that home office?

Do you see any home clients? Then you may need a commercial vehicle with gas as a business expense as well.

Anything you slightly need to run your business can and should be used.

If you have $9,000 to play with each month, that’s the equivalent of around $200,000 pre-tax full-time salaried job.

Welcome to the fun game of manipulating finances as an independent business owner, just make sure to talk over any big decisions with a tax professional.

There is a difference between mitigating tax liability and evasion, it would serve you best to know this topic on an expert level.

America is in full support of the entrepreneur so make sure to take advantage!