One of the biggest challenges business owners face isn’t revenue—it’s knowing how much to pay themselves. Without a clear strategy, many owners take sporadic distributions, leave excess cash sitting in the business, or neglect personal wealth altogether.
As Tom Seeko explains, business ownership should build both business value and personal financial security. A simple starting point is the 20% savings rule. By identifying total income—salary plus profits—and intentionally setting aside 20% for personal wealth, owners create structure and consistency.
This approach helps reduce burnout, avoids overreliance on a future sale, and ensures the business supports longterm financial goals. Automating monthly distributions and clearly defining how much capital stays in the business creates clarity for both operations and personal planning.
When done thoughtfully, paying yourself becomes a strategy—not a guessing game.
Transcript
Are you unclear how much money you should be taking from your business? Maybe you keep too much cash inside, or you worry there isn’t enough to pay yourself and reinvest.
Being an owner shouldn’t only be about growing business wealth—it should also focus on growing personal wealth.
Business ownership is one of the most profitable investments available. For example, a business doing one million dollars in revenue with margins between five and twenty percent could generate anywhere from fifty to two hundred thousand dollars of income.
Without a clear strategy, many owners take random distributions, get burned out, and eventually want to sell—without knowing what the business is worth or having strong personal finances.
A simple approach is the 20% savings rule. Your salary and profits are your income, and twenty percent should be intentionally saved toward personal wealth.
This material is intended for general public use. By providing this content, Park Avenue Securities LLC and your financial representative are not undertaking to provide investment advice or make a recommendation for a specific individual or situation, or to otherwise act in a fiduciary capacity. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. Tom is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Florida Veterinary Advisors and The Next Step Planning Group are not an affiliate or subsidiary of PAS or Guardian. California Insurance License #0K80141. AR Insurance License #15823672. Florida Veterinary Advisors is not registered in any state or with the U.S. Securities and Exchange Commission as a Registered Investment Advisor. The individuals associated with Florida Veterinary Advisors do not maintain specialized licenses or qualifications for the financial services provided to veterinary professionals. 7989827.1 Exp 5/27