Profit First uses separate accounts for different purposes, so money meant for debt stays untouched. Regular "rhythm days" to move money between accounts keeps cash flow steady and prevents surprise tax bills.
How can the Profit First system help me pay off debt quicker? Remove temptation. Some of the accounts, these smaller plates, are going to accrue a decent amount of cash in them throughout the year. So instead of being tempted to use the money that you set aside for something other than paying bills, set the money aside. You remove the temptation, therefore you won't necessarily use it on unhealthy things or unproductive expenses. Rhythm days. If you look at the way a bear eats, Compared to a horse. Horses are grazers, so they eat a little bit more throughout the day. And you have bears who eat one large meal. And while both are strong and powerful, the horse is leaner. Having rhythm days in our business where we are sitting down on a regular recurring basis to manage our cash is much better than waiting until we have to file our taxes and then we realize we made more money than we thought and how are we going to pay for the tax, let alone the upcoming bills?
