Your Map to Financial Success
Money Means Options
Being an entrepreneur means there’s no limit to how much you can earn. The more you understand and handle your money, the more choices you have for your future.
Money is a powerful tool that opens doors. It helps you grow your business, invest in yourself, and create the life you want, full of chances and opportunities.
About This Tool
This Budget Allocation Calculator is a free tool to help you allocate your money. It’s based on a zero-based budget principle, meaning every dollar you make has a place to go. We’ve included suggested percentages for each category to help you cover business essentials, save for the future, and invest in growth. We’ll walk you through each category, explaining why it matters and how it supports your goals.
At the bottom of the tool, you’ll see a section called "Estimated Remaining Balance," which should be zero based on the suggested percentages we’ve set as defaults. Since all category percentages add up to 100%, every dollar you make is assigned to a purpose. If you’re budgeting for something unique, don’t want to use a category, or just want to make adjustments, you can easily modify the percentages to fit your needs.
That Said, A Few Things to Keep in Mind:
Broad-Strokes Guidance:
This calculator gives you a good starting point, but it won’t cover every detail of your budget. For more personalized help, we strongly recommend working with a bookkeeper or CPA. They can help you stay on track with taxes and other financial stuff.
Flexible Categories:
The categories we’ve set up cover common financial needs for entrepreneurs, but they don’t cover everything. Use these categories as a guide to help you plan your finances.
Double-Check Your Numbers:
Like all things, this tool isn’t perfect. Use it as a basic map of your budget, and adjust the amounts to fit your needs and make sure your amounts line up with your cash flow and goals.
Allocation Maps
We have two maps to help you plan your money:
Needs Map
Optional Map
The Needs Map is your trail for covering essential expenses. Each stop on the map is a category that helps keep your business running. Once those basics are covered, the Optional Map lets you explore extra options for your business.
Exploring the Stops on Both Maps
Each icon on the map represents a budget category.
In the next section, we’ll outline what each category does, why it’s important, and how you can make the most of it. We recommend automating your finances, especially for the “needs” categories. Setting up recurring transfers can help keep everything organized.
Needs Map
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20% (Suggested)
What: This category makes sure your business takes care of its most important team member—you!
Why It’s Important: Paying yourself regularly reinforces the value of your work, supporting both your motivation and financial stability.
How: Set this money aside from your revenue first, before you pay for other things. Make it a priority and set up automatic transfers from your business to your personal account.
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25% (Suggested)
What: This percentage is dedicated to setting aside funds for taxes, so you’re prepared when tax season arrives.
Why It’s Important: While taxes aren’t fully predictable, they’re an unavoidable part of running a business. We chose 25% as a balanced estimate—an average between common tax rates of 20% and 30%—to help cover typical tax obligations. This creates a buffer, making you better prepared for any changes or surprises.
How: Open a dedicated tax savings account and transfer this amount each month. This way, you’re ready for tax payments without disrupting your regular cash flow.
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25% (Suggested)
What: This category covers your business’s essential costs—things like software licenses, accountant fees, support hires, and other tools that keep things running smoothly. Note: anything related to bringing in new clients, like marketing or ads, goes in the Client Acquisition section on the Optional Map (if it applies to your business).
Why It’s Important: Having a dedicated budget for essentials keeps you organized as your business grows. With the basics covered, you’re free to focus on growth without unnecessary interruptions.
How: Make a list of your regular operating expenses to stay clear on what’s included here. This helps you spot any new needs and keeps your plans on track.
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5% (Suggested Minimum)
What: Retirement isn’t an age—it’s a number $$$! This amount helps you build a retirement fund for long-term security.Why It’s Important: As a business owner, you don’t have an employer putting money into your retirement. Setting aside even a little helps you plan for the future.
How: Open a retirement account, like an IRA or Solo 401(k), and set up automatic transfers from your business income. These accounts offer tax benefits and help grow your savings over time.
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5% (Suggested Minimum)
What: This money is saved to cover your health insurance and healthcare costs.Why It’s Important: Health insurance can be expensive, and having savings for it helps you handle these costs without worry. Saving regularly also prepares you for any surprise health expenses.
How: Figure out your monthly health insurance cost and try to save a little more than that in case prices go up. You might want to use a separate savings account or a Health Savings Account (HSA) if you qualify. This cushion will help if health costs go up or if you have unexpected expenses.
Optional Map
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2% (Suggested)
What: This money is for learning new skills through courses, certifications, or conferences.
Why It’s Important: Investing in yourself helps you stay marketable and keep up with changes in your industry.
How: Plan for learning opportunities that match your goals. Focus on those that will help you grow your skills or meet new people in your field.
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4% (Suggested)
What: If your business has debt, this money is set aside to help you pay it off.
Why It’s Important: Paying off debt regularly improves your credit, saves you money over time, and gives you more control over your cash flow. It’s key for building a strong financial foundation.
How: Set up regular payments and keep track of your progress. You can focus on the debts that feel most manageable first or go with the ones impacting your budget the most.
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4% (Suggested)
What: This money is for growing your business, like creating new products, marketing, or expanding.
Why It’s Important: Having money set aside for growth helps you take advantage of new opportunities and keep your business moving forward.
How: Think about areas where you want to grow, and focus this money on projects that will have the biggest impact. This way, you’re ready for big opportunities when they come up.
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3% (Suggested)
What: This money is for activities that help you find new clients—like marketing, ads, or other outreach efforts.Why It’s Important: New clients are essential for keeping your business growing. Setting aside this budget helps you concentrate on bringing them in.
How: Identify the best ways to reach new clients for your business, and put this budget toward what works best.
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1% (Suggested)
What: This money is set aside for occasional legal costs, like creating contracts or handling any surprise legal needs.Why It’s Important: Having a small reserve for legal costs helps you be prepared and handle these expenses without disrupting your cash flow or other budgets.
How: Put aside a set amount each month, and use this money only for necessary legal expenses that keep your business safe and compliant.
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2% (Suggested)
What: This money is saved for unexpected expenses related to your business, such as recurring bills or costs that arise when you can’t work, like during medical leave.Why It’s Important: An emergency reserve ensures you can handle sudden costs without relying on your regular income. This fund is different from a personal emergency fund, which covers general unexpected costs in your life. This reserve specifically supports you as a business owner during times when you might not be earning.
How: Keep this money in a separate account and use it only for true emergencies, like medical leave, urgent business bills, or unexpected expenses. After you use some, make sure to refill the fund quickly so you’re always ready for the next surprise.
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2% (Suggested)
What: This reserve acts as a cushion to help you manage changes in your operational expenses.Why It’s Important: Having an operational reserve means you’re ready for unexpected costs without the added stress. Costs can change as your business grows, and this reserve makes sure you can cover those expenses without interrupting your daily operations.
How: Use this reserve for:
Fixing equipment that breaks down
Buying supplies for a one-off event
Covering any surprise fees
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2% (Suggested)
What: This flexible category lets you set aside money for anything special that your business needs but doesn’t quite fit into the other categories.Why It’s Important: Every business is unique, and having this adaptable fund helps you meet specific needs as they come up.
How: Use this fund thoughtfully for one-off expenses that can add value to your business without taking away from your essential needs.
Budget Allocation Calculator
Estimated Remaining Balance: $0.00