In this instructional YouTube video, Ryan Vaughn addresses the common frustration of managing business expenses by explaining how the Profit First cash‑flow system alleviates that stress. He outlines the concept of allocation (or rhythm) days—either weekly or twice‑monthly (e.g., the 10th/25th or 5th/20th)—when a business transfers a predetermined percentage of income into separate buckets such as team member pay, owner’s pay, profit, tax, equipment, and operating expenses, and simultaneously pays bills. By consolidating expense review to these regular intervals, he argues that real‑time tracking is unnecessary; only the expenses incurred since the last allocation need be considered. This batching frees the entrepreneur to focus on client work, growth, and team development rather than constant bookkeeping. Vaughn concludes with a call to action, asking viewers to leave a review for the book Profit First for Microgems to improve its Amazon visibility, and reinforces the message that disciplined, periodic cash‑flow management reduces stress and supports profit as a deliberate choice.
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Hello everyone. Um, today I'm still working off of the survey that we had, um, all of you wonderful people fill out. Um, the frustration is managing expenses is a frustration, and I wanted to talk about that. Obviously, that's what we're here for. So in the Profit First system, we have allocation days, and what those days mean Is that you've identified the health of your company, you've identified the percentages of your income that needs to go to your separate buckets, like team member, owner's pay, profit, tax, equipment, operating expenses, etc. Um, when you sit down and have those days where you're taking money from the income account and you're transferring into your other buckets, you also pay your bills on the same day. So half of the people who run Profit First are doing it weekly, and then the other half are using like a 10/25 rhythm from the book, which means on the 10th and the 25th, or maybe the 5th and the 20th. The bottom line is they're putting money into these different buckets every 15 days-ish, or once a week, like say on Friday. So Managing expenses shouldn't be frustrating, especially when you're implementing this system. When I sit down, say I'm every Friday, I'm sitting down, I'm looking at my bills, um, and I'm determining what I can pay, but I'm also managing my expenses while I'm doing it because I only have to look at the expenses that happened in the last time period. So if I'm doing it every week, I'm just looking at a week of expenses. If I'm doing it every 15 days, I'm only looking at 15 days of expenses. You don't have to track your expenses in real time. Like, you don't need someone sitting there and every second of the day logging in and updating it if you spent a dollar or a penny. As long as you're sitting down on a regular basis, like once a week or twice a month, that is enough time because nothing is going to happen. that's going to be so catastrophic in a 7-day or 15-day time period, as long as you're doing it regularly, right? Nothing's going to be happening between that time period that you're gonna be like, oh my gosh, where did this expense come from? It's completely out of the blue. So manage— don't get frustrated with managing expenses in real time. Don't do it. As long as you're following the system and you're managing the expenses in that time period that you're looking at, that's all that matters outside of sitting down on your allocation days or rhythm days, as we refer to them in the book. As long as you're doing that, you, you don't need to be thinking about your expenses the rest of the week. You can just focus on serving your clients. You can focus on growth. You can focus on training your team, all those different things, the things that really push the needle. That's why this cash flow management system of Profit First is so great, because it helps you reduce the stress and time you're thinking about it, because you have concentrated time periods either once a week or every 15 days, 10th and 25th, the 5th or the 20th. So don't get frustrated with managing your expenses. Just take the time when you're transferring money into the different buckets. We would really love it if you would leave a review for the book Profit First for Microgems. We are trying to hit a metric with Amazon. Apparently they give a lot of visibility to books that have more reviews. So if you could help me out, I'd appreciate it. We are going to put a link in the comments below. So please, just as a favor to me, it definitely serves me. But my, my ultimate goal is that the book can get into more hands, and the more reviews there are, the more people might be interested in buying it. So thanks again for listening. Remember, don't let managing expenses in real time or any time be frustrating. Just follow the system. Chunk it out. It works. Profit is a choice. Have the courage and wisdom to choose it.
