What is the Profit First method and does it work for freelancers?

Profit First is a cash-management system that flips the usual formula. Instead of Sales − Expenses = Profit, it treats profit as something you take first: Sales − Profit = Expenses. Practically, every time money comes in you divide it across several bank accounts by preset percentages — profit, owner's pay, taxes, and operating expenses — so each dollar has a job before you can spend it. By skimming profit and taxes off the top immediately, you avoid the trap of spending everything and scrambling at tax time. It suits freelancers well because the tax and owner's-pay accounts enforce the discipline that irregular income makes hard. Start simple with just a few accounts and modest percentages, then adjust as you see what the business can sustain. The method's real value is behavioral — it makes good cash habits automatic rather than relying on willpower.