Three-Part Income Split

A simple framework for setting initial monthly income goals based on Noah Kagan's approach to financial planning when starting his business.

Core Monthly Income Target: $3,000

• Divided equally into three $1,000 buckets:
  • Living expenses ($1,000)
  • Food/eating ($1,000)
  • Savings ($1,000)

Key Philosophy Points

• Started with modest, achievable goals rather than ambitious targets
• Focused on basic needs coverage rather than wealth accumulation
• Used Paul Graham's advice: Focus on serving customers today rather than 10-year plans
• Success came from following curiosity rather than chasing specific financial targets

Evolution of Goals

• Initial goal was simply making $3,000/month from a side hustle
• Never set long-term revenue targets early on
• Business grew organically from focusing on immediate customer needs
• Eventually scaled to $80M+ annual revenue without initial grand plans

Mindset

• Start small with realistic, livable income goals
• Break down income needs into clear categories
• Focus on immediate execution over long-term planning
• Let growth happen naturally through customer service
• Don't get caught up worrying about future scale