Just realized I’ve been so focused on keeping my business afloat, I’ve neglected planning for retirement. As a solo freelancer, there’s no company 401(k) to fall back on.
Anyone else in the same boat? How are you planning for the future when your income fluctuates month to month?
Retirement’s a pain to think about. I just toss some cash in a savings account when I can. Not much, but it’s something. Beats worrying about it all the time.
Look, retirement ain’t rocket science. Set up a SEP IRA or solo 401(k) and stick some money in there every month. Even if it’s just a hundred bucks, it adds up. Don’t overthink it.
Get your books straight first. Know what’s coming in and going out. Then figure out a percentage you can live with. Maybe 10% of your profit. Put that aside before you spend on anything else.
And don’t forget about taxes. Last thing you want is the IRS breathing down your neck when you’re trying to retire. Keep it simple, but keep at it.
Been there, done that. For years, I just hoped things would work out. Big mistake.
Now I treat retirement savings like a bill. Every month, no matter what, I put something away. Started with 5% of whatever I made that month. Some months it was only 50 bucks, but it was something.
Got a SEP IRA set up. It’s pretty easy and lets you put away more than a regular IRA. Plus, it’s all pre-tax money, so it lowers what you owe Uncle Sam each year.
Also started keeping better books. Helps me see the bigger picture and plan better. I use a simple spreadsheet to track income and expenses. Makes it easier to see how much I can realistically save each month.
Don’t forget about diversifying. I put some money in index funds, some in bonds. Keeps things balanced.
It’s not perfect, but it’s way better than crossing my fingers and hoping for the best.