The simplest way to pay yourself involves issuing yourself a paycheck (transferring funds into your personal bank account) on a set schedule that you determine. This money should not be used for the business; instead, it should be used for your own personal needs, including your mortgage payments, groceries, personal transportation, vacations, and more. Of course, there are other ways to make sure you are paying yourself, too. These include:

• Making regular deposits into your 401k or Roth IRA accounts. When you put money toward your retirement, you are investing in your own future. 
• Paying off debt. You might also choose to pay yourself first by paying off your personal debts, including things like credit cards, student loans, mortgages, auto loans, etc. Again, this ensures that you are focusing on your future wellbeing and financial security. 
• Depositing into your health savings account. If you don’t already have a health savings account, consider setting one up with the funds you pay yourself from your small business. Of all of the benefits associated with a healthcare savings account, the potential for money savings is the most enticing – and one of the most important.
• Creating an emergency fund. The funds you pay yourself from your small business revenue can be used to create a “nest egg” for emergencies. Ultimately, you should save enough money to cover between three and six months’ worth of expenses in the event of an emergency. 
• Saving for a major purchase. Many small business owners pay themselves in order to save money for a down payment on a home, and some even save money to purchase their personal automobiles in cash, which comes with a significant discount. 
• Buying insurance. Finally, you could even purchase insurance with the funds you pay yourself each period. Health, life, and long-term disability care are all fantastic investments. 

If the idea of paying yourself first seems tantalizing but you aren’t sure where to start, hiring a professional bookkeeper who is focused on helping small businesses save cash is your first step. Over time, you’ll find that you can not only pay yourself enough to accomplish your personal goals, but you can build significant savings in your business account, too.