Let’s be honest—money can feel complicated. Especially when you’re running a service-based business. You’re passionate about what you do, but pricing your services and managing your income? That can quickly become a messy, overwhelming part of the journey.

But it doesn’t have to stay that way.

Today, we’re diving into what it really means to break free from toxic pricing in your business. If you’ve ever felt stuck, underpaid, or unsure how to manage your money as an entrepreneur, this is your sign to reset and take control—starting now.

From Hating Accounting to Helping Others with Money

Katie Scott didn’t start off as a money expert. In fact, she used to feel completely lost when it came to understanding money. Numbers didn’t click for her, and financial concepts just seemed like a foreign language. But somehow, in college, she ended up taking an accounting class—and surprisingly, she didn’t hate it.

Actually, she had a professor who helped her see that she could learn this stuff. And that moment changed everything.

So, Katie kept going. She studied hard, graduated, and landed a job in accounting. She did everything she thought she was supposed to do…until she realized something big: she hated the job.

That might sound dramatic, but it was real. The long hours, the pressure, and worst of all—she didn’t feel like she was truly helping people. Sure, she was generating reports, but there was no real impact or transformation happening. And that just didn’t sit well with her.

Eventually, she stepped away and decided to take a leap of faith. She didn’t have a clear plan, but she knew one thing for sure—she wanted to help people manage their money in a way that was actually useful and life-changing.

Money Management Isn’t Just for Accountants

Here’s something most people don’t know: just because someone is an accountant doesn’t mean they’re great at managing money. Shocking, right?

Katie realized that even after studying accounting, she didn’t feel confident managing her own finances. That’s because most accounting programs teach you how to track what happened, not how to make better decisions before the money is spent. There’s a big difference between bookkeeping and money management—and this is where Katie found her passion.

She wanted to help people make smart, intentional choices with their money—before they swipe the card, not after. That’s what led her to where she is today: teaching business owners how to confidently manage their money with simple, sustainable systems.

Why Paying Yourself Matters (More Than You Think)

Now, let’s talk about something super important—paying yourself.

If you’re running your own business, especially after leaving a corporate job, it can be tempting to pour every dollar back into the business. You might tell yourself, “I’ll pay myself later.” Or maybe you think your business can’t afford to pay you yet.

But here’s the truth: paying yourself is not optional. It’s necessary.

Yes, it’s about making sure you can cover your personal expenses. But it’s also about building wealth, reinvesting in your future, and creating a business that actually serves you—not the other way around.

When you pay yourself consistently, you’re not just earning a living. You’re creating stability. You’re building savings. You’re growing your net worth. And honestly? You’re giving yourself the freedom you started this business for in the first place.

Because if you’re not meeting your personal financial needs, and you’re not building toward freedom, you’ve basically just traded one 9–5 job for another—with more stress and fewer benefits.

What Wealth Really Means

Let’s take a second to talk about wealth. Most people think wealth is about how much you can spend. Like, “If I’m wealthy, I can buy anything I want.”

But that’s not true wealth.

Wealth is about owning assets that grow in value over time. It’s about having savings, investments, and a profitable business. It’s about creating long-term security—not just short-term spending power.

In your personal life, that might look like saving money, investing in retirement, or even buying property. In your business, it looks like building a strong foundation, having healthy cash flow, and making sure your systems are set up to scale.

And here’s the thing: paying yourself is the first step to building that kind of wealth.

So, Where’s the Balance?

A lot of people get stuck here: “Should I pay myself or reinvest in my business?”

The answer? You need to do both.

That’s why you need a simple money system—something that helps you see your numbers clearly, so you can make informed choices. One great method is the Profit First system, which Katie highly recommends.

Here’s a basic breakdown of how that system works:

• 50% for owner’s pay (yes, pay yourself first!)
  
• 30% for operating expenses
  
• 15% for taxes
  
• 5% for business savings
  

It’s not about being perfect. It’s about having a starting point that you can tweak as you grow. The key is to make your money work for you—in a way that feels balanced and aligned with your goals.

The Dangers of Toxic Pricing

Now, let’s dig into one of the biggest traps service-based business owners fall into: toxic pricing.

Toxic pricing happens when your prices hurt you or your clients. And unfortunately, it’s super common.

Here are two common toxic pricing mistakes:

1. Underpricing

This is where most new entrepreneurs start. You price your services really low because you’re trying to get clients or you’re afraid of charging more. But low prices can actually repel people. If your price seems too low, potential clients may assume your service isn’t valuable or that you’re not experienced.

Not only that—low prices hurt you. You end up working really hard, making very little, and burning out fast. And when that happens, resentment can creep in. Suddenly, something you once loved doing starts to feel like a burden.

2. Overpricing (Without Strategy)

On the flip side, some people swing the other way and set super high prices—just because they think they should.

Maybe a coach told them to charge more. Maybe they saw someone on Instagram doing it. But when there’s no real strategy or value behind that high price, things can fall apart quickly.

You might feel anxious or guilty about the price. You might struggle to deliver results that match what you charged. And if a client isn’t happy? That stress lands squarely on your shoulders.

So, how do you avoid both traps?

Price from Value, Not Fear

Instead of guessing your prices or copying what others are doing, start with your offer’s value.

• What transformation are you helping someone achieve?
  
• What’s the result your client will walk away with?
  
• How will their life or business be better after working with you?
  

Once you know the transformation you’re offering, you can begin to assign value to it. And from there, create a price that feels good to you—something that reflects the impact of your work, while also being aligned with what your ideal clients can afford.

It’s okay to start lower and gradually increase your prices. You’re allowed to evolve. The goal is to be honest, intentional, and confident in what you’re charging.

Need a Starting Point? Try This:

If you’re not paying yourself or feel completely overwhelmed with your money, start small.

Here’s your simple next step:

1. Open a business bank account (if you haven’t already).
   
2. Review your last month or two of expenses. Write them down. Round up the numbers. Keep it simple.
   
3. Create a rough plan using the Profit First percentages or whatever works best for your current stage.
   

You don’t need to go back through 12 months of bank statements. You don’t need a fancy spreadsheet right away. Just start with what you have and build from there.

If you want help, Katie has a free resource called the CFO Starter Kit. It includes calculators, tracking templates, and simple tools to help you start managing your money today. It’s beginner-friendly and totally doable—even if numbers aren’t your thing.

The Bottom Line

You started your business to create freedom, right?

But if you’re not paying yourself, not managing your money, and stuck in a pricing rut, you’re going to end up feeling trapped. And that’s not what you signed up for.

So take a deep breath. It’s not too late to fix this. With the right mindset, a little strategy, and a whole lot of grace, you can break free from toxic pricing, start paying yourself, and build a business that truly works for you.

You’ve got this. 💛