Simplifier

Okay, let's break this down in a way that's easy to understand. Think of your business like a garden. You're earning money (harvesting vegetables), and you're saving some of it (putting some veggies in the pantry). But you're also putting a lot back into the garden (buying seeds, fertilizer) to make it grow even bigger. What you're doing – saving 30-40% some months, less other months, and reinvesting a lot – sounds pretty normal for a business owner. When your business is growing, it often needs more "seeds and fertilizer" (reinvestment). As for what other founders save personally, it varies a lot! Some save a ton, some save very little, especially when they're focused on growing their business. It really depends on their personal goals and how fast they want their "garden" to grow.

Financial Planner

As a financial planner, I often see founders in a similar situation. Reinvesting heavily in your business, especially during growth phases, is common and can lead to a temporary plateau in personal savings. Saving 30-40% of your take-home pay is excellent when you can manage it, but it's understandable that it fluctuates. What's "normal" for other founders is hard to quantify, as everyone's circumstances and risk tolerance differ. The key is to ensure you have a solid financial plan that considers both your business needs and your long-term security. This includes setting clear financial goals, diversifying your investments beyond the business, and having a contingency plan in case things don't go as expected. Focus on building a sustainable business that eventually allows you to extract more personal income without jeopardizing its growth. Once you reach that point, you can aggressively ramp up your personal savings and investments to secure your financial future.

CPA for Small Businesses

As a CPA for small businesses, I can tell you that there's no one-size-fits-all answer to how much founders "should" save. Your personal savings rate is highly dependent on your individual financial goals, risk tolerance, and stage of life. However, consistently saving 30-40% of your personal income is generally considered excellent, even if it fluctuates. It's common for founders to prioritize reinvesting in their business, especially during periods of growth. This can lead to a temporary plateau in personal savings. Just be sure that you are paying yourself a reasonable salary. The IRS is very clear that business owners need to pay themselves fair market value for the work that they do. If you are not paying yourself a reasonable salary, the IRS may reclassify distributions as wages, which are subject to employment taxes. From a tax perspective, remember that reinvesting in your business can often lead to tax deductions or credits that can offset your overall tax liability. Keep meticulous records of all business expenses and consult with a qualified tax professional to ensure you're maximizing all available tax benefits.

Small Business Consultant

Alright, let's cut through the noise. Saving 30-40% of your take-home as a founder is solid, especially with a growing business. It's completely normal for that percentage to fluctuate based on business needs. Reinvesting in growth is smart, but don't neglect your personal financial security. As for what other founders save, it's all over the map. Some are hyper-focused on reinvestment and save very little personally in the early stages. Others prioritize personal savings for peace of mind. There's no magic number. The key is to find a balance that works for you, considering both your business goals and your personal financial well-being. Instead of comparing yourself to others, focus on your own financial plan. Make sure you're paying yourself a reasonable salary, tracking both business and personal expenses, and setting clear savings goals. Consider consulting a financial advisor to optimize your personal savings strategy alongside your business growth.

Serial Entrepreneur

Normal is a setting on a washing machine, not a benchmark for entrepreneurs. You're reinvesting in growth, which is the right move early on. Flat personal savings while scaling revenue? Expected. Forget comparing yourself to others. Focus on runway. Can you cover personal expenses if the business hits a wall? If yes, keep pushing. If no, dial back reinvestment and build a personal safety net. Ultimately, your personal savings rate is a function of your risk tolerance and growth strategy. There's no magic number. Just make sure you're not betting the farm – or your family's future – on a single roll of the dice.

Points of agreement

• Saving 30-40% is a solid rate, especially with a growing business, but it's normal for that to fluctuate based on business needs.
• Reinvesting in the business, especially during growth phases, is common and can lead to a temporary plateau in personal savings.
• There's no magic number or "normal" savings rate for founders; it depends on individual circumstances, risk tolerance, and financial goals.

Points of disagreement

• The Serial Entrepreneur emphasizes ignoring comparisons and focusing solely on runway, while others (Consultant, CPA, Financial Planner) suggest having a broader financial plan beyond just immediate survival.
• The Serial Entrepreneur dismisses the concept of "normal," while others acknowledge that while individual situations vary, there are general ranges and expectations for savings rates.