←Stage 77 · Premium
Business

Capital and Pay

You've got $20,000 in the account and $2,500 of bills a month. Could the account pay them? This stage is the arithmetic behind that question. You'll work out the return your bills would need, keep your living costs outside the account, and see what taking pay costs it. And you'll see how a salary funds the business while it grows.

Stage 77 of the TradeWize trading-as-a-business track: you'll work out the return your bills would need, keep your living costs outside the account, and see what taking pay costs it.

0 / 11 done
StartLesson 1 · The Return You'd Need
What you’ll leave with11 lessons · 5-line playbook
  • I divide what I need by what I have, and if the answer is a return nobody earns, the account is too small to live on.
  • My living costs for the months ahead sit outside my trading account, and I know how many months they cover.
  • Every dollar I take out stops compounding, and I know what my pay costs the account.
  • I do not take pay out of a drawdown, because the draw deepens the hole I have to climb out of.
  • I never trade money that has a payment due on it.