Patricia Stallworth No Comments

Today on the Minute – What’s Your Break-Even Point?

Your breakeven point is the point where your income equals your expenses and there is zero left over.

Several of my clients are business owners and meeting that break-even point or BEP is so important to the future of their business and in many cases their livelihood as well. So how much money do you need to earn each month to cover your fixed and variable expenses. Your fixed expenses include things like your rent or mortgage payments – things that are always there. Your variable expenses are things like food and entertainment that can vary from month to month. One of the most disturbing things that I often find is that many people don’t know where that point is and that can cause you to fall deeper and deeper in debt without realizing what is happening until you reach your credit card limits.

It’s important for business owners to know their BEP or break-even point because making anything less than their BEP means that they have a loss and if they do that enough times it could put them out of business.

And the same thing holds true for you. If you don’t make enough to cover your expenses each month you need to do something. You need to earn more money or cut back on your expenses. You can’t just keep going or you could eventually go under.

So take a minute and calculate your BEP and if you are exceeding it do you know where the extra money is going and if you’re not meeting it, what are you going to do to get yourself in balance.

And that’s the minute for today. I love helping people with all aspects of their financial lives. Wanna learn more about calculating your BEP or do you have a question, is debt is an issue or would you like some help in getting your financial house in order contact me at or go to my website at and sign up for a free discovery session.

Thanks for listening and as always remember that minding your money really is the path to a richer life!