Revenue vs. Profit vs. Wealth

Understanding the difference between revenue, profit, and wealth is a pre-req to money savv & scaling.

Gurus in the online space throw numbers around as selling points all the time, but it’s not always clear what they’re actually referring to.

Let’s break it down…

🤲🏼 REVENUE ~ this is what you actually receive.

You’ll hear this amount referred to as “cash months.” It’s also known as gross income. It’s the amount you bring in – before any expenses go out – so it’s not really a worthy metric of comparison to others in your space.

Example: Someone could have a 60k cash month, but have 50k in expenses that month, so they really only made 10k, which brings us to…

💵 PROFIT ~ this is what’s left over after you pay your business expenses.

Most people don’t talk about this amount, except with their tax person. This is the amount you’re taxed on – after you write off your expenses – also known as net income. It’s also what is available to pay your personal & household expenses, and invest in anything else.

Example: Let’s say your profit from the last example is 10k for the month, but your personal & home expenses are 7k. That leaves you with 3k to work with to generate…

💰 WEALTH ~ this is money put into investment assets so it can grow (appreciate).

This can look so many different ways. However you slice it, it’s the bigger picture purpose for getting savvy with your money. It’s how you get your money to work for you. It’s how you amplify your currency beyond trading your time for money. It’s how to leverage your money over time.

Examples: Stocks/bonds, crypto/NFTs, precious metals, real estate, angel investing, etc.

What’s important is that wherever you’re at, you’re keeping your eye on all of these. Know your revenue, profit, and wealth goals – independently of each other – so you can grow inside of a bigger picture of aimed success. 🚀

I’m so curious, were any of these 3 unclear in your mind? Which was most helpful?

🎙️ Brought to you by Lauren Poppins Raye – Connect on IG @laurenpoppinsraye and for deeper support to steward your boss currency flow & steer your self-employed success, check out Cosmic Currency 💫