Update: My tax slip-up left me in a bind

I didn't save for taxes and now I have to cover it from my emergency fund.

3 comments

3 Comments

Set up a separate savings account just for tax money and auto-transfer a percentage from every payment you get. I did that after my first brutal year of freelance work and it saves the panic every April. It sucks now but you'll thank yourself later.

the_olivia11d ago

Honestly, that auto-transfer trick sounds good but it doesn't always work. Taxes can change so much from year to year based on your income. Ngl, I tried it and ended up with too much money sitting there doing nothing. Tbh, you might need to adjust the percentage based on what you earn each quarter. It's better to check in often and move money as needed to avoid surprises. Just my take from doing this freelance work for a few years.

avery_torres4914d ago

Actually your percentage might change, @fiona_king, so check each year.