How to Handle Paying Yourself as a Stationery Designer

Being a stationery designer is a great way to express your creativity and make money. But, when you’re working for yourself, it can be difficult to know how much you should pay yourself. It’s important to remember that paying yourself is just as important as paying your bills and saving for the future. I do believe in paying yourself from the start, even if it’s small and inconsistent! Here are some tips on how to handle paying yourself as a stationery designer. 

Set a Reasonable Salary 

When setting your salary, make sure it’s reasonable and attainable given your current business income. Consider factors such as the amount of time you put into running your business, what other designers in your area are making, and the cost of living in your area. Setting a salary that’s too high might leave you with less money than you need to cover other business expenses. On the other hand, if you set it too low, you may be depriving yourself of additional income for no reason. 

When I started my business back in 2010, my income was all over the place, so therefore, so were my paychecks. I would take maybe $200 every few weeks as I could, which allowed me to have some sense of accomplishment in my business, even if it was small! Over the years, that grew and became steady, but it definitely didn’t start that way, and that’s ok! 

Here is my rule of thumb for breaking down your net profit (after expenses) from each of your projects:

~25-30% set aside for taxes (income + sales)

~15-20% back into business for cushion (savings + checking)

~40-50% take home (paycheck)

Once your business is pretty steady, I do recommend looking into determining a set amount that you would like to make each week/month and paying yourself consistently. As business owners, some months can be way busier or slower than others, and having a consistent income, even on those high-volume months, will allow you to still pay yourself on those low-volume months. 

Save for Taxes 

It’s important to remember that self-employed individuals are responsible for their own taxes. This means that you will need to save up enough money throughout the year to cover any taxes due at the end of the tax year. A good rule of thumb is to save approximately 25% of each project so that you can ensure you have enough money saved up when tax season rolls around. This will help ensure that there aren’t any surprises come April 15th! Also, unless you are single or are the only provider in your household, more than likely you have a spouse that has a W2 job and has withholding set to their paychecks. This will help offset some of your taxes most likely while you’re still growing your business. I always recommend checking with a professional accountant about your specific circumstances and state laws. 

Create a Budget 

Creating a budget is key when it comes to managing your finances as a stationery designer. Make sure that all of your expenses (including taxes) are taken into account when creating your budget so that nothing gets overlooked or forgotten about. Additionally, having a budget will help keep track of how much money is coming in each month so that it’s easier to adjust your salary accordingly if needed. It also helps create more financial stability which makes managing payments and savings easier overall! A budget will also help see what your monthly business operating expenses are that you have to take care of no matter what.

The actual logistics of paying yourself

If your business is set up as an LLC, then any profit that your business makes is considered YOUR profit. No matter if you take it out of your business checking account or not. Also as LLCs we do not have actual “payroll” where we are cutting a check through an agency that is taking our money for income tax, health care, 401k, etc – that is all on us. While this may sound stressful, it really isn’t when it comes to paying yourself.

You can literally just transfer money from your business account to your personal account each time you pay yourself.

That is considered your “paycheck”. I have all of my personal and business accounts with the same bank, so I am literally just able to do an internal transfer every Friday when I pay myself. And then I categorize it in Quickbooks as “equity” titled Contributions/Distributions. Your “pay” is not considered an expense in your business. It is part of the equity of your business. Again though, I do recommend that you chat with an accounting professional in your state to confirm your regulations.  

Paying yourself as a stationery designer doesn’t have to be complicated or overwhelming! With these tips – setting a reasonable salary, saving for taxes, and creating a budget, and knowing how to actually pay yourself – handling regular paychecks should become an easy task for anyone looking to make money from their artistry! Of course, every situation is different so don’t forget to consult with an accountant or tax professional before making any decisions regarding paychecks or taxes!