Why mixing destroys clarity
Unlogged household drawings silently consume working capital, then "no cash for stock" arrives as a surprise. Profit math with mixed money measures nothing (profit guide). The fix is mechanical: pay yourself a fixed monthly salary, log every extra drawing as a drawing, and review the total monthly.
Five boundary rules
- Fixed owner salary, paid like any wage — adjust quarterly, not daily.
- Every household drawing logged the same day, no exceptions.
- Separate expense categories: business vs household, always (expenses guide).
- Business cash never funds household EMIs directly — salary first, then spend.
- Monthly boundary review inside the monthly review; drawings trend down as discipline grows.
The salary mindset
Owners who earn a salary make investment decisions like owners; owners who graze the till decide like survivors. Cash-flow tracking (cash-flow guide) finally reads true once the boundary holds.
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