When we talk about salary, dividends, directors’ loans, and all that financial spaghetti — what we’re really trying to get to is one simple question:
What’s your Lifestyle Number?
It’s the number that tells you how much money you need to take from your business to live the life you actually want — without tax shocks, cashflow chaos, or the constant “am I doing this right?” anxiety.
And here’s the kicker: most business owners don’t know it.
“I Just Take Whatever’s There…”
In the past week alone, I’ve had the same conversation with two different business owners:
“I have no idea, I just take whatever I think is available.” 😬 “Mmmm, I’ve never thought about it. I just grab money when bills are due.” 😲
Sound familiar?
When you don’t know how much you need to take home, your business decisions become reactive instead of intentional. You end up in a cycle that looks like this:
Surprise tax bills (and different amounts every year)
No money set aside for tax
Feeling like you’re always behind
Business growth that’s up one year and flat the next
Wondering if this whole running-a-business thing is even worth it
It’s not that you’re bad with money — it’s that no one ever showed you how to link your personal goals with your business numbers.
Enter the Lifestyle Number
Your Lifestyle Number is the foundation for all your financial decisions — from how much to pay yourself to what your business needs to earn.
There are three versions of your Lifestyle Number, and each one helps you make smarter, calmer decisions about money:
The Survival Number – what you need to keep the lights on: bills, rent/mortgage, groceries, tax. The Comfort Number – everything above that, plus savings and a little breathing space for holidays or unexpected costs. The Freedom Number – your dream lifestyle: the version that gives you comfort, choice, and long-term stability.
Once you know these numbers, everything changes.
Why It Matters
Knowing your Lifestyle Number gives you clarity and control.
You can calculate how much profit your business needs to deliver. You can see where costs are eating into that profit. You can tweak your margins or pricing to bridge the gap. And — most importantly — you know your North Star Number, the revenue target that supports your lifestyle sustainably.
Suddenly, your business isn’t a wild guessing game anymore. You’re driving with the headlights on.
How to Work It Out
Here’s the simple version (we go through this properly in our webinar 👀):
- Add up your personal and household costs.
- Add tax (we can help estimate that part).
- Add your buffer — savings, holidays, and future goals.
- Multiply it by 12 for your annual Lifestyle Number.
Now, reverse-engineer: How much profit does your business need to make to pay that? And how much revenue does it take to make that profit?
That, right there, is your North Star Number.
From Chaos to Clarity
Once you know your Lifestyle Number, you stop guessing and start planning. You can make confident decisions about:
- When to increase your salary or dividends
- Whether your prices are high enough
- How to structure profit and tax planning
- How to make your business truly serve your life — not the other way around
Ready to Find Your Number?
This Friday we’re running a FREE 1 hour webinar to walk you through exactly how to calculate your Lifestyle Number and link it to your business goals. Sign up and join us: https://events.teams.microsoft.com/event/1bf03078-9575-4d37-88f5-adc1e672c5f0@c6997cdb-5d45-4689-9b09-79222550b878
If you’ve ever said “I just take whatever’s there”, this session will change how you see your finances — for good.