I have people with families and mortgages working for me, and they prefer a set amount every month so that’s the way I do it. If I have a windfall, I give out bonuses. And I fly everyone to Vegas twice a year and give them some play money. Plus I take one or two of them to conferences and they have fun.
I think solid staff is the most important thing to have, so I invest in them what I can. Plus, if I didn’t, taxes would absolutely kill me. I’d very much rather give them a bonus than be knocked back up into a higher tax bracket.
As far as personal finances go, I avoid debts like the plague. So I don’t get to deduct mortgage interest, but like I said, I’d rather give the money to staff anyway, and it helps knock down the taxes either way. The very first thing I did was to pay off all debt. It just makes me feel safe and like I can weather all the storms life tends to dish out.
I have worked for myself for over thirty years now and lost my ass twice. While I prefer not to lose everything, I’d still always rather be my own boss, ups and downs are par for the course.