Can Profit First work for me personally? Yeah, totally.
Look, Profit First as a system—the guidelines it offers—is really about spending money first on paper, setting aside money, and putting boundaries around your money before you're actually tempted to use it on other things.
When it comes to your personal use, the main account would be your OPEX for your household. So maybe we call it "Hopex" or "HOPEX," whatever you want. That’s going to 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—then you’ll want a separate account for taxes to make sure that come April 15th, when you owe taxes, you have the money to pay for it.
Two other common things we recommend are: retirement—you should be contributing something every month so you can eventually retire—and charity. A lot of our clients, including myself, like to be charitable. So there's a bucket that’s pretty common for people to have for giving.
Outside of that, any big thing that happens in your life can have a separate account. For example, if holiday shopping stresses you out—wondering what you can afford and what kind of gifts you want to give—setting up a holiday shopping Profit First account, where you put in a small amount every month, will give you a lot of control and clarity about what you can and can’t affordably do when it comes to shopping and generosity.
If you’re someone who loves to travel, maybe set up a travel bucket and put a percentage of your income into it every month. Want to buy a new car? That could be another bucket. Home improvement projects? That seems like a never-ending list in my household—I don’t know how it is for you—but setting aside a set amount of money each month into that account makes it easier to decide what project to take on. It helps you work toward something.
Now, unlike Profit First for business—whether you’re using Mike Michalowicz’s original table or my version for gyms and fitness businesses—there aren’t really established percentages that you can rely on for your personal finances. It's going to vary widely based on who you are, your desired quality of life, and your monthly expenses.
But you can play with the percentages. Whatever you establish, if it doesn’t work, you can change it.
Profit First absolutely works on a personal level. Set up your HOPEX account, tax account (if your business isn’t covering it), retirement, charity, and then as many other accounts as you want for the bigger things. The benefit—just like in business—is that you’re being intentional with your money. It gives you a sense of control, helps you know what you can and can’t do in your personal life, and relieves a lot of stress. You’ll find that your personal spending becomes more directed, and you’ll start growing wealth more easily as you place boundaries around how you use money.
So remember: profit is a choice. Have the courage and wisdom to choose it.
