Been freelancing for a few years now, and I’m starting to think more about the future. How do you all handle your income? Do you set aside a percentage for taxes, savings, and reinvestment?
I’m curious about strategies that have worked for others in building a sustainable business over time.
I just put everything in one account. Pay bills when they come in. Taxes are a pain, but I deal with them later. Not the best system, but it works for now.
I keep it simple. Set aside 30% for taxes first thing. Then, I put 20% into savings for slow months and emergencies.
The rest goes to living expenses and a bit for business upgrades when needed. Nothing fancy, but it works for me.
Consistency is key. Stick to your percentages no matter how much you make each month.
Been there, done that with the one-account mess. Now I’m a bit smarter:
The rest is for living and a little fun. Can’t be all work, right?
I use a basic spreadsheet to track it all. Nothing fancy, but it keeps me honest.
Big tip: pay yourself a set amount each month. Helps smooth out the ups and downs.
Review every quarter. Your needs change, so should your setup.
It’s not perfect, but it’s way better than my old ‘hope for the best’ approach.
I’ve been doing this for about 8 years now, and here’s what’s worked for me:
I split my income into buckets. 25% goes straight to taxes. Learned that lesson the hard way my first year.
15% goes into a business account. That covers software, equipment, courses, and conferences. Keeps me competitive.
10% goes into retirement. Wish I’d started this earlier, honestly.
The rest is for living expenses and a bit of fun money. Gotta enjoy life too, right?
I use a separate business checking account for all this. Makes it way easier come tax time.
One tip: review your setup every few months. Your needs change as your business grows.
I just do the job and get paid. Don’t think about all that fancy stuff.
Here’s what I do:
Set aside 30% for taxes right off the top. Non-negotiable.
10% goes into a business account for expenses and upgrades.
15% into savings for slow periods. This business has ups and downs.
The rest is for living expenses and a bit of pocket money.
I use separate accounts to keep it all straight. Makes tax time a lot easier.
One thing I learned: pay yourself a regular salary. Helps with budgeting and keeps you from going crazy during good months.
Keep it simple, but be consistent. Adjust your percentages if needed, but stick to the system.