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Amazon business take home pay
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amother




Peach


Post  Wed, Apr 11 2018, 6:46 pm
If you or your husband has an Amazon business would you mind anonymously sharing if he/you brings home a set wage each month/ week etc, and if yes how much it is.

Also if the wage isn't consistent how do you figure out your expenses etc?

Trying to do some financial planning here.
Thanks
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amother




Denim


Post  Wed, Apr 11 2018, 6:55 pm
This is a general question, about how does anyone without a fixed income - for example a realtor - budget?
You need to figure out on average how much money you make a month, and set up your budget on the low end of that range. When you have EXTRA money one month, you need to save it for another month, when you might earn LESS than expected. It’s important to be disciplined with this, and not use all the extra money without saving for months where things don’t go quite so well.
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amother




Peach


Post  Wed, Apr 11 2018, 7:03 pm
amother wrote:
This is a general question, about how does anyone without a fixed income - for example a realtor - budget?
You need to figure out on average how much money you make a month, and set up your budget on the low end of that range. When you have EXTRA money one month, you need to save it for another month, when you might earn LESS than expected. It’s important to be disciplined with this, and not use all the extra money without saving for months where things don’t go quite so well.


Good point about the second part being a general question. (Although I also am interested in hearing what potential there is out there for Amazon businesses).

When you say to set up your budget does it mean you take it a monthly set wage from the business account no matter what the company actually earned that month. Or that you take out money according to what the business earned that month to your personal account but budget after.... iykwim?
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thunderstorm









  


Post  Wed, Apr 11 2018, 7:05 pm
My DH has his own business. (Not Amazon, but I don't think it makes a difference what business it is). The company earns the money and he gets a steady monthly paycheck from the business. He takes out an amount less than his business is really able to pay so that he has a cushion to fall back on should there be a period that is not as successful.
But the income is steady since he only started taking out a paycheck after the company earned enough to cover his annually salary. Not sure if I'm being clear here.
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amother




Teal


Post  Wed, Apr 11 2018, 7:10 pm
thunderstorm wrote:
My DH has his own business. (Not Amazon, but I don't think it makes a difference what business it is). The company earns the money and he gets a steady monthly paycheck from the business. He takes out an amount less than his business is really able to pay so that he has a cushion to fall back on should there be a period that is not as successful.
But the income is steady since he only started taking out a paycheck after the company earned enough to cover his annually salary. Not sure if I'm being clear here.


This. Can you afford to do this?

My husband has recently started his own business ans this is what he is planing to do.
He is still currently employed at another company too. And is planning to not tell anyone until he can afford to leave his current job (which means make more than his current wake as there will be an added expense of health insurance.....) He currently works on it nights and weekends/days off. And I help during day time hours if needed.
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amother




Denim


Post  Wed, Apr 11 2018, 7:12 pm
amother wrote:
Good point about the second part being a general question. (Although I also am interested in hearing what potential there is out there for Amazon businesses).

When you say to set up your budget does it mean you take it a monthly set wage from the business account no matter what the company actually earned that month. Or that you take out money according to what the business earned that month to your personal account but budget after.... iykwim?
no you definitely budget before. Personally, I think it’s best to live on a standard somewhat beneath your means. So it’s set, and doesn’t fluctuate month to month. An increase in standard of living is only if it can be maintained every month. That doesn’t mean you don’t give yourself a “bonus” from time to time, but the budget is more fixed and not dependent on that months earnings.
- dh friend just left Kollel and went to work. He finally made a deal - and promptly went and leased a Lexus. This is an example of what NOT to do. He should rather be saving the money for a month when he doesn’t make any deals, unless he’s been at it long enough that he knows he can afford that standard.
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amother




Brunette


Post  Wed, Apr 11 2018, 7:16 pm
amother wrote:
If you or your husband has an Amazon business would you mind anonymously sharing if he/you brings home a set wage each month/ week etc, and if yes how much it is.

Also if the wage isn't consistent how do you figure out your expenses etc?

Trying to do some financial planning here.
Thanks


this would really depend on how successful the business is.

ideally - when things are going very well, there is enough money generated by the business to pay whatever weekly "salary" the owner wants. In reality in the beginnings of a business "the start up phase" there may be no extra at all for 'salary'.

Your expenses? not sure what you mean by 'figure those out' - but it would be wise not to budget for any extravagances unless there is a good source of alternative income, atleast not in the beginning.
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amother




Peach


Post  Wed, Apr 11 2018, 7:23 pm
The business is at a point where it seems to be able to afford a very decent salary.... but being the cautious type and knowing how these things can fluctuate we are trying to work things out.
From the opinions here Maybe we can work out a set salary and re-evaluate per quarter if it still works.... does that make sense?
Also should the business save up for a rainy day? Should we? Or both?
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amother




Brunette


Post  Wed, Apr 11 2018, 7:25 pm
amother wrote:
The business is at a point where it seems to be able to afford a very decent salary.... but being the cautious type and knowing how these things can fluctuate we are trying to work things out.
From the opinions here Maybe we can work out a set salary and re-evaluate per quarter if it still works.... does that make sense?
Also should the business save up for a rainy day? Should we? Or both?


Is this structured as an LLC which your Dh owns 100%
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amother




Peach


Post  Wed, Apr 11 2018, 7:27 pm
I think so but am not sure. What's the difference?
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amother




Plum


Post  Wed, Apr 11 2018, 7:27 pm
My husband used to do it. I work and have a steady salary. We figured out the minimum per week we need to live on and thats how much he took. You need to figure out in your situation how much is minimum you need. If you are not working and its alot that may be an issue....
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amother




Brunette


Post  Wed, Apr 11 2018, 7:35 pm
amother wrote:
I think so but am not sure. What's the difference?


100% owned LLCs don't technically pay their owners - the owner takes 'draws' from the business by moving the money from the LLC bank account into the owners bank account. No payroll taxes to worry about - so its fairly easy to take money as needed, and not have to deal with recalculating payroll withholding taxes. (don't interpret that as the owner not needing to pay tax, its just not on a W-2).

that said - many people like the consistency of a standard weekly draw.
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amother




Jetblack


Post  Wed, Apr 11 2018, 7:36 pm
My husband makes an $220k a year and takes home $90k
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amother




Denim


Post  Wed, Apr 11 2018, 7:51 pm
amother wrote:
Also should the business save up for a rainy day? Should we? Or both?
YES!!!!
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amother




Peach


Post  Thu, Apr 12 2018, 12:12 am
amother wrote:
My husband makes an $220k a year and takes home $90k


What do you mean by take home? That 220k is before taxes and expenses and 90k is after., or is 220k after expenses and taxes but your husband leaves the rest of the profit in the business while taking home 90k?
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amother




Peach


Post  Thu, Apr 12 2018, 12:13 am
amother wrote:
YES!!!!

I'm assuming you are saying yes for both having savings? Which is more crucial if the business can only afford one? Or should whatever can be saved be divided?
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amother




Lilac


Post  Thu, Apr 12 2018, 12:41 am
Me and my husband own an amazon business. Welcome to the club Smile
Any business, especially an amazon business should have a cushion of at least 3 months worth of expenses in the event that something goes wrong - the biggest fear being that you get suspended.

If it is still a one man show at this point, you will need money to cover suppliers as well as any fixed expenses.

Larger companies should put away for rent, payroll, and other expenses.

My company doesn't have this amount in cash on hand, however we do have a line of credit we can dig into on rainy days.

Many amazon businesses skyrocket in fourth quarter so if your husbands business is seasonal at all, you should put away after the holidays to get you thru the next 8 months.

Our goal is to seriously live off our business so at this point the focus is to keep the cash in the company and grow it to the point where it is completely viable and stable.

We do take our expenses out of the business (member draws, LLC) but I don't think I'm a role-model in budgeting....so I will leave that to others Smile
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amother




Aubergine


Post  Sun, Apr 15 2018, 11:23 pm
I want to start Amazon, but stuck with what to sell!!
I'm lost!
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amother




Denim


Post  Sun, Apr 15 2018, 11:53 pm
amother wrote:
I'm assuming you are saying yes for both having savings? Which is more crucial if the business can only afford one? Or should whatever can be saved be divided?
I’m not sure, but with Amazon you can get suspended fairly easily so you need to be careful that your business has money.
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amother




Jetblack


Post  Mon, Apr 16 2018, 8:25 am
amother wrote:
What do you mean by take home? That 220k is before taxes and expenses and 90k is after., or is 220k after expenses and taxes but your husband leaves the rest of the profit in the business while taking home 90k?


220 is after taxes and then he takes a salary from the business account of 90k. We do have a cushion of about $500k. In the amazon world you do need a big cushion just in case.
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