Pay Yourself Right
WHY
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Having a dedicated tax and savings account removes the temptation to spend money that isn’t really yours. It’s a simple system that builds peace of mind.
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Treat tax like a fixed cost, not a surprise bill. Allocating a set percentage of income each time payment hits your account prevents the end-of-year scramble.
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Future planning isn’t only for emergencies, it creates space to invest in new equipment, marketing, or opportunities without touching your wage.
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Keeping tax funds in your main account may boost cashflow temporarily, but it opens the door to accidental overspending and mounting pressure when payments are due.
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Small, consistent transfers to tax and savings accounts make your financial landscape clearer no more guessing if you can afford your own pay.
Paying yourself isn’t just about what hits your personal bank account. A chunk of your business income belongs elsewhere, taxes, savings, and future growth. When you plan for these before you spend, you stop the end-of-year panic and create breathing room for opportunities. This module helps you build a system that holds money aside, so you can pay yourself confidently and still meet obligations when they land.
EACH YEAR, OVER 50,000 NEW BUSINESSES ARE REGISTERED IN NZ, EACH WITH ITS OWN STRUCTURE AND RULES.
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EACH YEAR, OVER 50,000 NEW BUSINESSES ARE REGISTERED IN NZ, EACH WITH ITS OWN STRUCTURE AND RULES. ✦
Stop guessing how much you can afford to take each month.
Ready to take control of your income and your business? Follow along, and make this the moment you start paying yourself properly, on your terms, with confidence and clarity.
Background: Alex set up monthly drawings, but he hasn’t been separating tax money.
Problem: End-of-year tax season hit him with a surprise $3,200 bill he couldn’t pay immediately.
Action: He opened a separate tax saver account and now transfers 20% of each payment into it as soon as a client pays.
Outcome: Next tax season, the money is already there. No scramble, no guilt—just a smooth payment and business as usual.
Alex, Sole Trader
Creative / Artist
Scenario 1:
Reduce stress and know exactly where your money is going.
Ready to take control of your income and your business? Follow along, and make this the moment you start paying yourself properly, on your terms, with confidence and clarity.
Cleaning Business
Scenario 2:
Priya, Tradesperson
Background: Priya pays herself fortnightly and runs payroll for her staff, but she was leaving her tax money in the main account for “cashflow flexibility.”
Problem: She often dipped into tax funds to cover materials for big jobs, assuming she’d replace it before GST or provisional tax was due. Sometimes, the replacement didn’t happen.
Action: Priya implemented a three-account system: operations, tax, and wages. Tax is no longer touched once set aside.
Outcome: She feels less cash-rich day to day, but the relief at tax time outweighs the discomfort. She can now plan her investments instead of juggling them.
Clear records, predictable income, and confidence are within reach.
Ready to take control of your income and your business? Follow along, and make this the moment you start paying yourself properly, on your terms, with confidence and clarity.
Consultant
Scenario 3:
Background: Tom runs a company and is already on PAYE, so income tax for his wage is handled automatically.
Problem: Dividends and retained earnings were being fully reinvested into software tools, leaving no cash buffer for growth opportunities or unexpected expenses.
Action: He set a policy: 20% of all post-tax profits go to a business savings account, 10% to a “future fund.”
Outcome: Six months later, he used the future fund to attend an overseas conference that brought him three new clients—without touching his personal income.
Tom, Service Provider
Reflection Questions
How much of your income should you set aside for tax each time you get paid?
Do you currently use separate accounts for tax and savings, or does it all sit together?
If a big tax bill landed tomorrow, how would your business cope?
What’s one future expense or opportunity you want to start preparing for now?
Are you willing to trade a little day-to-day flexibility for long-term peace of mind?
Conclusion
One size does not fit all when it comes to business, you are not limited by your specific trades or skills; instead, you have the opportunity to explore and expand your potential beyond what you might initially think. The best way to define your business is to make a Business Plan, this allows you to see the full picture of your business or organisation over the next 3 years.
Your Business Plan explains how you will operate, earn revenue, and handle expenses and most importantly clarifies roles and processes in your organisation.
Regularly updating your plan to include new insights and adjustments is crucial for staying relevant and achieving long-term success.
SOLE TRADER
NOT-FOR-PROFIT
COMPANY