“Paying yourself” sometimes seems impossible but is important for creating a solid foundation for your business. – Uganda, Africa – By David Kamanzi #000016
By David Kamanzi From Uganda Africa
Dear viewers, my name again is David Kamanzi. I am happy to come and talk to you today about “Paying Yourself” in your business. This kept on growing in me in my journey of doing my business. I realize that there are dangers when you do not know how much you are working for. Because at the end of the day you are going to find that you have eaten everything. You do not know your pay; you do not know what you are working for. When you do not know that in your mind, you cannot get the excitement, the zeal, the guts, to do business. You must know. You must know, how much you are working for. And so, in this business experience, I missed it all because I would make money and then there would come things on the way. And I realize all that we have some sick people, the bills have come. All these things you want to buy a new shirt, you want to buy new shoes and a phone, a good phone has come on the market. You want all these things. But if you do not understand what you are working for you will find yourself paying for the things you did not want. But because you have money on you, you want to spend money on all these things. So, you must be careful.
And so, in the journey I learned another idea. I had not then opened an account and so I wanted to have my bank and I tried to be organized. So, I came up with an envelope idea. Because I wanted to know, let us say, in a month, this is what I’m working for. This is how much I make, that comes out of my business. The total that comes out of my business. And I wanted to see those things that are so important in my business. Those things that are what we are paying for. And so, the number one thing I wanted to know, how much am I working for. I bought the envelopes. I wanted to know that at the end of the day I keep myself and my business in good shape. So, let us say my transport business, I needed to change tires on the car. I needed to do the service. I needed to put some money for just in case of anything.
Some people can afford insurance, but you know I realized that time I could not afford insurance, so I came up with an Envelope Idea as my insurance just in case the car has a problem. So, I made sure that each time I got all the money made for the whole month, I wanted to put aside some money in an envelope just in case of anything. I knew I had some money I kept somewhere. If I run out of tires, if I need to do a service, all this. I make sure that every month each time I get a check for my business, I put some money. Whether the car has done the service or not, I wanted to put some money aside for just in case of anything. You know something can come and its big and it needs some big money and you have just been putting, just a few schillings on the side. So, I came up with a figure and said, this is what I will be putting down each month.
So then also, some of you people, you are going to realize that business is the only source of your income. It is where you provide for your medication, all your home needs. So, you want to know some of those things you spend money on, some electricity bills, water bills, and medication. Again, as you do business you have to really be in good shape. You must be healthy. So, I knew I was going to be taking some anti-malaria. I wanted to keep myself healthy, so I said I needed to have an envelope for my medication. And so, I put it down. Also, I saved some money, whether I am sick or not, I know I have some money for my health. You know, I want too really be healthy. To do business you want to be healthy. You do not want to be sick all the time. You are supposed to be going. You have customers and they need you and you are sick, and you are complaining. You are going to ruin your business. You must really be in a good shape. Treat yourself. Make sure that you are healthy. So, I put aside some money for my health. You can call it Health Insurance, to those who can afford to pay for insurance. So, I made my health insurance in the form of an envelope. I put an envelope for my medication. Each time I am sick, I’m not going to get money from the business into my treatment. I have an envelope. Each time I can get some money in this envelope.
Yeah, if you do not have another source of income you have to know some of those things. Say, if you want to pay for your water bills, your electricity bill, and household bills; all those things, you know. Put, maybe some money also aside for these things. And then you are done. But after then you realize you want to know your salary. How much are you working for? You know, what keeps you in business? What keeps the excitement? And the guts of doing business is what you are working for. Which is your pay. Your salary. You must really make sure that you know your salary. After all you have paid, all these things. You have your business in good shape. You have paid your legal, insurances, your legal government taxes and everything. Then ask yourself, how much do I pay myself? So, you come up with a figure, and say okay, “this is my salary”. You know, this is my salary, then put an envelope. Take an envelope, this is what I used to do. I take an envelope, I put my salary each day. I am a Christian, so I believe in giving tithes. Out of my salary I also took out my tithes. I gave my tithes because I wanted God to bless my business. And so, I took my tithes. And out of my salary, that is where I give also a love offering. I have people I want to bless. I want my business to be blessed so I give our tithes, so that my business will be blessed. I put my tithes aside out of my income out of my salary.
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