"Distributions, Temptations, and That Sneaky Credit Card Clock"

In this episode of No Se Habla Taxes, I’m confessing something that every solo business owner has probably thought about: giving yourself a raise the moment new money hits the bank. 

But before I could celebrate my new client wins with a little extra payout, I had to pump the brakes and take a hard look at what’s actually smart for my business right now. 

We’re talking about: 

• 💸 Why I pay myself via distributions (not salary) as a single-member LLC 
• 🧾 How that 0% interest credit card I’ve been floating is about to turn into a pumpkin 
• 💰 The unglamorous magic of setting aside cash for taxes and emergencies 
• 🙅🏽‍♀️ Why “just because you can” doesn’t mean “you should” — especially when it comes to paying yourself 

This isn’t about being stingy. It’s about making intentional money moves as the CEO of your business—even if you’re the only one on payroll. 

✨ Bonus reality check: If you’re not saving at least 25% of your net income for taxes… this one’s for you. 

📥 Subscribe to No Se Habla Taxes and get more behind-the-scenes financial confessions, smart bookkeeping tips, and permission to not have it all figured out. 

Until next time: watch that credit card clock, save your receipts, and pay yourself like the boss you are. 

Let's connect!

LI: https://www.linkedin.com/in/armstrongmelissacpa/

Website: https://steadyhandaccounting.com/

Coaching Program Waitlist: https://steadyhandaccounting.myflodesk.com/ofgzp2o7tc

Episode Transcript

(00:10):
Welcome back to No Se HablaTaxes, the podcast where A CPA
does her own bookkeeping andlives to confess the tale.
I'm Melissa Armstrong,fractional controller, solo
practice owner, and thefinancial translator you call
when winging it starts to feelrisky and today.

(00:31):
We're talking about temptation,so it's the start of the month.
I am doing my usual, logginginto QuickBooks, reviewing my
bills, checking in on cashflow,and I see it, a couple of new
client payments just hit myaccount, yay, growth, and then

(00:55):
that little voice in my headsays, Hey.
Maybe you give yourself a littlerace.
Just a, smidge, you deserve it.
Now listen I do pay myself.
Okay.
And we'll talk about that somemore in a future episode, but I
do pay myself, and I think youshould too.

(01:17):
I am a single member, LLC, sowhen I take money out of the
business, it's called an owner'sdraw.
Not a salary.
I'm not on payroll.
And if that last sentence madeyour eyes cross, it's okay.
Just know that what I'm talkingabout in this episode only

(01:40):
applies to certain businessstructures, not all.
And if you've been wonderingwhich camp you fall into,
spoiler alert, I'm not your taxexpert.
Are you surprised?
Hope not.
I never have been and I neverwill be proudly.

(02:02):
So anyway, just as I'm reachingfor the metaphorical race, I
remember something that shinyzero interest card, I've been
floating some expenses on.
Do you remember I talked to youabout it a few episodes ago?
Well, the intro offer is aboutto expire, which means if

(02:23):
there's still a balance, notonly will I owe interest, it
will be retroactive all the wayback to day one.
Not cute.
Plus, I haven't set aside my taxstash yet as a self-employed

(02:44):
human.
I was advised to save around 25%of my net income to cover that
delightful cocktail of federal,state, and self-employment tax
that'll come knocking in April.
And don't even get me started onthe emergency fund.

(03:06):
One of my long-term goals is tohave between 30 and 60 days of
operating cash on hand, youknow, for slow months surprise
expenses, or when Mercury ghostretrograde, and three prospects
ghost me at once.

(03:27):
So here's the deal.
It's really easy to celebratenew income by spending it.
We've all done it, but realsustainability comes from
playing the long game.
Where have I heard that before?
Before you give yourself a raiseor a bonus, ask yourself, do I

(03:52):
have debt about to get moreexpensive?
Have I set aside money for taxesand do I have enough cash to
survive a quiet month?
This is not about deprivingyourself.
It is about protecting yourbusiness, the one you decided to

(04:15):
create, the one you should benurturing, and it starts with
visability.
If you are doing your ownbookkeeping, even just
reconciling and glancing at a pl, every now and then, you're
already ahead of the game.
So yes, I had a moment.

(04:36):
I almost paid myself a littleextra, but instead I paid off a
chunk of the credit card, movedsome cash to my tax savings
account, and promised futureMelissa.
She'd get her bonus next quarterif the numbers make sense and

(04:57):
that my friends is financialadulting.
Glamorous.
No.
Does it suck?
Yes.
Satisfying.
Weirdly, also, yes.
So if this episode made youthink twice about your own

(05:21):
payday logic, make sure you aresubscribed to No Se Habla taxes.
And if you're navigating thesedecisions solo, I've got more
confessions and bookkeeping.
Real talk, calming your way.
Until next time, save for taxes.
Watch your credit card clocksand pay yourself like a boss,

(05:45):
not a reckless intern.