This is NOT a rule.
This is just how I do it.
Everyone’s situation is different.Income, risk tolerance, goals, family, stress levels
So take this as inspiration, not a prescription.
Here’s how I personally split my profits:
50% → Reinvest into
inventory
This keeps the engine growing.
More capital means more opportunities and faster learning.
25% → Put aside (buffer / safety)
This gives me breathing room.
Bad buys happen.
Slow months happen.
Life happens.
25% → “Spending” money (but often still reinvested smartly)
This is the part most people blow on random stuff.
I often use this to make future money easier or faster.
Examples:
• Storage solutions to organize inventory better
• Better lighting or phone tripod for faster product photos
• Packaging supplies bought in bulk to lower cost per shipment
• Scales, label printer, shelving
• Market entry fees or table upgrades for flea markets
• etc
Sometimes I still treat myself.
But I like when my “fun money” quietly compounds into better systems.
This balance works for me.
Growth without stress.
Safety without fear.
Progress without burnout.
You might split differently and that’s totally fine.
The right split is the one you can stick to consistently.