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My accountant mentioned that 70% of his freelance clients don't set aside money for quarterly taxes, and it's the main reason they get into trouble.
I started putting 30% of every single payment into a separate savings account immediately, and it saved me from a huge panic last April.
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william1946mo ago
Yeah, I saw a blog post about this. The writer called it the "pay yourself last" method. Basically, the first thing you do when a client payment hits is move the tax portion to a separate account you never touch. It's not your money. Doing it right away means you can't accidentally spend it on something else, like a new laptop or a slow month. That's the only way it works for me.
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dakotal196mo ago
That's just basic financial hygiene, not a strategy.
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hernandez.miles6mo ago
Oh come on, the line totally matters! Calling it "hygiene" makes it sound optional. A real strategy is about the order you do things in, like paying off high interest debt BEFORE you even think about investing. That's a plan, not just brushing your teeth.
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