In this instructional video, John Briggs explains how to apply the Profit First methodology to personal finances. He outlines a core set of accounts – a main household operating expense account (referred to as HOPE/HOPEX), a tax reserve account for those without a business tax account, a retirement contribution account, and an optional charity bucket. Beyond these, he recommends creating purpose‑specific “buckets” for major life expenses such as holiday shopping, travel, vehicle purchases, and home‑improvement projects. Briggs stresses that the percentage of take‑home pay allocated to each account should be flexible and tailored to an individual’s lifestyle, cost of living, and financial goals, and can be adjusted over time. The overarching benefit of this intentional allocation system is greater control, reduced financial stress, and a clearer path to wealth accumulation. He concludes with a motivational reminder that profit is a conscious choice that requires courage and wisdom.
Chapters
Can Profit First work for me personally? Yeah, totally. Look, Profit First as a system, like the guidelines that it offers, is really about spending money first on paper, setting aside money, putting boundaries around your money before you're actually tempted to use it on other things. So when it comes to your personal use, We would have the main account being your OpEx for your household. So maybe we call it HopEx or HopeX, whatever you want. That's gonna be your main account. If you aren't using a tax account with your business, because the tax account from your business should cover your income tax burden, if you're not doing that or you don't have a business and you're just running Profit First for personal stuff. You want a separate account for taxes to make sure that come April 15th when you owe taxes that you have the money to pay for it. 2 other common things that we recommend: retirement. You should be contributing something every month towards something so that you can retire. And then, well, you don't have to do this, but a lot of our clients, including myself, we like to be charitable. So there's a bucket that it's pretty common for people to have for charity. Outside of that, really any big thing that happens in your life, you could have a separate account for. So for example, if holiday shopping stresses you out and what can you afford and what kind of gifts do you want to give, setting up a holiday shopping bucket. Profit account, Profit First account, so that you're putting a little bit amount in it every single month. It's gonna give you a lot of control and clarity over what you can and can't do affordably when it comes to holiday shopping and generosity and giving gifts to others. If you're someone who loves to travel, maybe having a traveling bucket. So you're just putting a percentage of your income A month away every month into your travel bucket. You want to buy a new car? That could be a bucket that you use. Maybe home improvement projects. That seems like that's a never-ending list in my household. I don't know how it is with you guys, but putting aside— setting aside a certain amount of money every month into that account makes it easier to then determine what kind of home improvement project can we do, and it lets us work towards something. Unlike Profit First, where there's been a bunch of studies, whether you do Mike Michalowicz's version and you're looking at his original table, or if you're a gym owner and you're looking at the table I created for gyms and fitness businesses, we have kind of established percentages. There's not really established percentages In my opinion, that you really can rely on at this point when it comes to what amount of your monthly take-home income goes into each of these accounts. That's going to vary widely based on who you are, the quality of life that you want, the expense, how much your life costs, those types of things. But you can play with the percentages, right? Whatever you establish as a percentage, if it doesn't work, you can change it. But Profit First absolutely works for you on a personal level. Have your HOPE Act account, tax if your business isn't doing it, retirement, charity, and then as many other accounts as you want for the bigger things. And the benefit is, just like with the business, You're being intentional about your money. So then it gives you a sense of control of knowing what you can and can't do on your personal life. And that relieves a lot of stress. And it also makes it so your spending on the personal level is much more directed. And you will find if you do this, That growing your wealth happens a lot easier as you place boundaries even around the way you use your money personally. So remember, profit is a choice. Have the courage and wisdom to choose it.
