“Tackling the daunting task of managing your monthly finances”

The Benefits of Bi-Monthly Bill Payments: Embrace the Profit First 10/25 System for your Fitness Business

Hey fitness entrepreneurs!

Last week we talked about organizing your desk and your bills.  This week we want to share with you a simple trick that can make a big difference: paying your bills twice a month using the Profit First 10/25 system. Let’s dive into why this habit is a game-changer for keeping your fitness finances healthy.

The Benefits of Bi-Monthly Bill Payments

Managing finances can be one of the most daunting tasks for any business owner. But by dedicating time twice a month to pay bills, you can keep your finances organized and stress-free. Here’s why it’s a game-changer:

• Avoid Late Fees: Regularly scheduled bill payments ensure you never miss a due date, saving you from unnecessary late fees.  The biggest challenge we see with our fitness clients is that they simply forget to dedicate time to this task.  It’s not that you don’t have the money to pay the bill, you don’t have the time set aside to do it and that results in unnecessary fees.

• Better Cash Flow Management: Knowing exactly when your bills are paid helps you manage your cash flow more effectively.  You can see the ebbs and flows of your business more easily and the times that your bank account requires more cash - like around payroll or rent due dates.  When you pay bills sporadically through the month without a system these trends are not as easily detected.

• Reduce Stress: Having a set schedule for bill payments means you’re not constantly worrying about outstanding bills.  

How to Implement the Profit First 10/25 System

The Profit First 10/25 system is a fantastic way to streamline your bill payments and keep your finances in tip-top shape. Here’s how to get started:

1. Choose Your Dates

Pick two dates each month to focus on your finances: the 10th and the 25th is what the system teaches, but you can choose to do weekly at the same day/time or the two days a month before you run payroll. We call these “rhythm days.” The 10th and 25th work well because they split the month into two manageable chunks, giving you plenty of time to handle your bills.

2. Put All Bills in their Place

When a new bill arrives to your inbox - send it right to your digital folder for payment on the next rhythm day.  A new invoice arrives on your desk? Right to the spot on your desk for bills.  Make sure you have 30 day payment terms with all your vendors set up to give you the mental space to pay bills on rhythm days instead of trying to manage “due upon receipt” chaos.

3. Pay Current Bills and Save the Rest

Keep all of your bills organized in one place on your desk and one folder on your computer.  Pay all the bills that are due before your next rhythm day.  This helps to more easily show your cash flow and also ensure you don’t have to worry about any bills coming due again until the following rhythm day.

4. Review Statements

Use your rhythm days to review your bank and credit card statements for any errors or unauthorized charges. This step helps you catch mistakes early and keep your accounts accurate.

Wrapping Up

By setting up a bi-monthly bill payment schedule using the Profit First 10/25 system, you’re not just organizing your finances—you’re setting yourself up for success. Regular bill payments keep your finances in check and your mind at ease, allowing you to focus on what you love: helping your clients achieve their fitness goals.

Ready to take charge of your finances and keep your business running smoothly? These simple steps are a great place to start.  

Stay fit and financially savvy,

Erica