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Heard a guy at the coffee shop say he puts 50% of every freelance check into a separate account
He was talking to someone about how it covers his taxes and slow months. I've always just set aside about 30% for taxes and hoped for the best. His way seems super strict, but maybe it's smarter for building a real buffer. I'm trying to figure out if that's overkill or the only way to not get wrecked by a dry spell. How much do you guys actually set aside from each payment?
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josephbutler4d ago
Used to think that 30 percent was plenty until a client paid late and my quarterly tax was due. That buffer wasn't enough and I had to pull from my own pocket. Now I do the 50 percent thing into a separate bank account. It covers the taxes and leaves a real cash cushion for when work is slow. The peace of mind is worth the strict rule.
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