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  • It's Pay Day!

It’s funny to say this…. but I have never truly gotten a REAL paycheck. Sure, I had a high school part time job (Beside’s “Katelyn’s Kraft’s”) but when you’re getting a $250 paycheck… it’s not the same as a REAL paycheck. I’m talking about a “big girl” paycheck.. the kind that had taxes and social security taken out, can pay a majority of your bills and is the same amount every two weeks. I’ve never had this experience… until recently. Michael and I just recently became an S. Corp because it really just made more sense for us. We needed to both be employees of Katelyn James Photography so that our health

insurance could be a business expense and so that our personal assets weren’t attached to the business directly and legally. There are a lot of other benefits of the S Corp but I won’t bore you with them! We had been a sole proprietor for a LONG time and we knew the change was way overdue! We wanted to change before Michael even joined the business but guess what happened right about that time… we were building a house… and building a house requires a ton of underwriting if you’re young and self-employed. So switching everything up during that season wouldn’t have been smart. :) Now we’re officially where we want to be legally.

After a CRAZY tax season, this change was very welcomed. So what’s different now? Well, WE GET PAYCHECKS!! That’s the most exciting part! Previously, we just transferred money for our personal life as needed. There wasn’t any structure because I have this crazy obsession with tucking money into both our business savings and personal savings accounts and seeing how much I can put away without needing to use it. It’s not a bad obsession… in fact, it’s the only way we were able to build our new house. However, when you don’t have a system and a structure to your income level (especially when this is your main source of income), it makes it impossible to have a budget. So a few weeks ago, we received our FIRST PAYCHECK! I get one and Michael gets one twice a month. We pay our CPA to manage our payroll so that this change requires no additional work for us. If our business account is running low one month, she has access to our business savings to transfer from there. We sat down and decided on a salary we thought was realistic and anything extra will stay in the corporation. We’re BIG Dave Ramsey fans and so we believe that not only should your personal life have an “Emergency Fund”… but your business should also. So our new system will set us up WELL for both business savings and personal savings.

Michael has been working hard on our “BUDGET” the last few days. We never really had one since we didn’t have a set amount of income each month but all of that has changed! We know exactly what we’re going to make and now we can tithe more accurately, spend more responsibly and saving more regularly. We have big goals financially…. who knows if they’ll happen! But we have a much better chance of reaching those goals since we can actually see what we’re doing with our money. We’re EXCITED about this!! I mean, I’ve NEVER felt like I was ever being PAID for all of my hard work!! Now I feel like a normal person with a paycheck on the 1st and 15th of every month! We announce “It’s PAY DAY” around the house just because we can!!! It’s the little things in life:)

We’re thankful for this change… we’re also thankful for some of the great financial advice we’ve received not only from our CPA but also from our financial advisors… which we’ll have to share more about sometime soon! It’s never too late to start financial planning! Whether you have $50,000 or $500 in savings, it’s still a great thing to do for yourself and a your family!! So happy Thursday everyone! It’s PAY DAY for us!!!!

Ps. That picture? It’s great… except for the remotes. haha Just ignore those:)

xoxo, Katelyn
19 Comments Personal
  1. Wynona reply

    who is your cpa and financial advisor? and great post! I love it. I think Dave Ramsey is so great! :)

  2. Megan K. Marcus reply

    Ha! That’s so funny. And kind of adorable. It’s so interesting to hear you were a sole proprietor up until now!!

  3. Jeremy Schmucker reply

    Congratulations! I would love a blog post later about the pros/cons of s-corp vs. sp vs. other options. As I was reading your post this morning my wife Kristin looked at me and said “what are you doing” I said “reading about being an s-corp” to which she replied “you’re reading about being an escort!” haha – good times!

  4. Claudia reply

    oh good for you kate!… im still waiting for mine :)

  5. Meagan reply

    Hey! Welcome to the budgeting world! If you are big DR fans (like my hubby & I), check out YNAB – http://www.youneedabudget.com – its DR’s envelope system but in electronic form. It changed our whole lives. Its software that you create a budget & then enter every transaction (from your phone, on the go, in real time) that is then recorded & you see the numbers in each category drop (just like the envelope system). Definitely worth checking out!

  6. Erica Baker reply

    Congratulations!! my husband and I have been looking into becoming an s-corp. So many benefits!

  7. Michael Alsop reply

    Thanks meagan! We had talked about the envelope system, but this seems more like our lifestyle! Thanks for the tip!!

  8. natalie kay reply

    Congrats! I am also in the process of buying a new house and it has been a chore dealing with some of my Small Business income mixed in with my Full Time Job. I am so glad it is working for you all!

  9. Sally Krueger reply

    Hi Katelyn! I’ve been following you for years, but never commented on your blog before. I started my business 2 years ago. (Little backstory… I have 3 awesome kids. 11, 9 & 6…and a few yrs ago my hubby encouraged me to pursue my dream of being a “for reals” photographer!) I have learned sooooo much from you, jasmine, Abby grace, creative live and so many others willing to give back. (thank you for that!!) so anyway – I always thought that if I commented on your blog it would be photography related – but here i am unable to resist posting about this one. My husband and I are also both self employed. He is a chiropractor and I have been his office manager for years. We are also an s corp…but really only started budgeting this year after watching financial peace university (good ol’ dave r!!!) Ah-mazing!!! We are telling our money where to go and living on this actual budget. My hubby’s paychecks are regular and the same amount every time!! (that did not happen before!) It has taken a couple of months to really hammer it out and to be honest, we still have some fine tuning to do – but it is happening!! We force ourselves to sit down together twice a week and it is working! Thank you for posting and letting others know about how useful this is…and I am proof that it is never too late! Since i am being longwinded..i will also just say – LOVE your home – it is so beautiful!!! And someday, somehow (maybe sooner now that I’m budging) i will get to one of your workshops!! You rock! Many blessings and continued budgeting success!

  10. Crystal reply

    I am a sole proprietor. It works best for me. But just this year i decided to start paying myself every two weeks. I am paid the same amount no matter how much i truly profit. For times when i profit more, the extra will be set aside to cover the slow months so i can still pay my rent and have a small income. If slow months never come again (fingers crossed) it will turn into savings for the business. I am pretty excited about it as well. :) congrats on getting paychecks!

  11. ali W reply

    this is such a wonderful post! i know that financial “things” aren’t the most fun to deal with or talk about… [married to a banker…], but they can sometimes be the most rewarding! And that photo is wonderful! It’s funny you mentioned the remotes because my first thought was, “I should get something to put our remotes in…” Love you friend!

  12. Cyndi V. reply

    Hey Katelyn, Chris and I are an LLC filing as an “s-corp’ also. We too, recently added payroll (as opposed to draws) for our income. We were able to set up payroll through ADP for $33 per month, which was less costly than our CPA could manage it…I was surprised how affordable it was through ADP. There are also some legal benefits to having a service manage your payroll as well. Just thought I’d pass along. Congrats!

  13. Andrew B reply

    Your photography is such an inspiration to me! I love your style and all of your work. I can’t wait to (hopefully) someday make photography a career for myself just like you have.

  14. Sarah Nolan reply

    That’s awesome!! I noticed the remotes right away (something I probably won’t have noticed a few years ago). Congratulations on the change! That’s awesome that you can finally truly pay yourself and manage your personal and business finances. I am a huge saver as well. I love to watch my savings grow and having a long term financial plan is crucial. Congrats!

  15. -s reply

    Love this! Yay for pay day!!

  16. Susan Fowler reply

    Wow– I had no idea how like minded we are! We’re moving to an s-corp soon and I’m scared yet excited. Dave Ramsey is the best! Got out of debt 4 years ago and were guests on his tv show!

  17. Stephanie Messick reply

    Oh this is a great post and so true! It is important to pay ourselves to feel some sort of reward for our hard work. You totally deserve it!

  18. Rachael reply

    Katelyn, what a great idea! It is so hard to figure out how much to pay yourself when you don’t get a paycheck from your business. I look forward to when I can do that instead of also relying on my part time nursing career ;) Congrats!

  19. Kristina W. reply

    Happy pay day! :)

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