I’ve been freelancing for a few years now, and tax season always catches me off guard. I know I should be setting aside money throughout the year, but it’s easier said than done.
Anyone else struggle with this? How do you manage to save for taxes without feeling like you’re constantly broke?
I just stuff some cash in a jar every month. Not fancy, but it works for me. Keeps the tax man happy and I don’t have to think about it much.
Been there, done that with the tax panic. Here’s what I do now:
I use a separate business checking account. Every time money comes in, I move 30% to a savings account labeled ‘Tax Fund.’
It’s not perfect, but it works. I treat that 30% like it’s not mine. Makes budgeting easier too - I only plan with the 70% I keep.
Took me a while to get disciplined about it. But now it’s habit. Come tax time, I’m not scrambling.
One tip: I round up. If I owe $5000 in taxes, I keep $5500 saved. That extra cushion has saved my butt more than once.
It’s not fun watching that money sit there. But it beats the stress of not having it when you need it.
Here’s what works for me:
Set up a separate account for taxes. Every job, move 30% there right away. No exceptions.
Don’t touch that money. It’s not yours. It belongs to Uncle Sam.
I use basic accounting software to track income and expenses. Helps me see what I really owe.
Pay quarterly if you can. Spreads out the hit and keeps the IRS happy.
It’s not complicated, but you gotta stick to it. Treat it like any other business expense.
Remember, it’s better to have too much saved than not enough. You’ll thank yourself come tax time.
I set up a separate savings account just for taxes. Every time I get paid, I transfer a percentage right away.
It’s automatic, so I’m not tempted to spend it. Makes tax time way less stressful. Plus, seeing that account grow is kind of motivating.
Yeah, taxes can be a real pain when you’re freelancing. I’ve tried a bunch of things, but here’s what’s working for me now:
I use a simple spreadsheet to track income and expenses. Each month, I:
It’s not perfect, but it keeps me from panicking come tax time.
One thing that helped me stick to it: I pretend that money doesn’t exist. It’s like it’s already spent.
Also, I started paying quarterly estimated taxes. It spreads out the pain a bit.
The hardest part was getting started. But once it became a habit, it got easier. Now it’s just part of my routine.
Remember, it’s better to save too much than too little. You can always use the extra for something fun if you overestimate.