Have you heard of lifestyle inflation?
Lifestyle inflation tends to happen after you have started a new job or received a raise. Once there has been an increase in your salary you tend to want to spend more money- this spending can often get out of control because you believe that you can afford to spend more. Lifestyle inflation can lead to spending your entire paycheck without leaving any money to save or invest.
Dividends vs. Salary: What Should You Take?
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Dividends or salary?
When deciding to compensate yourself for all the work performed in your business, there are two main methods you can consider. You can either declare dividends or pull a salary from the company. Each method has its own advantages and caveats depending on your goals. By finding the option that works best for you, you will be able to effectively compensate yourself.
What are the benefits of dividends?