Being well organized and having good time-management and self-starter skills can help you better succeed at freelancing. It can also be beneficial for freelancers to have good money-management skills. In most cases, freelance workers don’t make a set regular income or get paid every two weeks like many traditional employees. Instead, they often have varying workloads throughout the year. Because of this, income may fluctuate, and payments may be sporadic.
As a freelance writer, I’ve had to make an effort to improve my money management habits over the years. Being a freelancer has been a constant learning experience. My biggest personal finance tip for other freelancers is to automate tax savings.
By doing this, I’ve been able to lessen my stress and feel more comfortable about my finances. Even when my workload is low, I know that I have the tax money I need already set aside. Keep reading to learn more and to see how doing this may help you.
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Freelancers should automate tax savings
As a freelance worker, you’re responsible for setting aside and paying your own taxes. If you don’t do this, no one else will. If you don’t make quarterly tax payments and instead pay on April 15, you could be hit with penalty fees. Plus, if you haven’t been saving all year, it can be extremely stressful having to pay a large sum of money all at once.
In the past, I didn’t automate my tax savings. Because of this, there were times where I had to come up with a lot of money within only a few weeks to pay my taxes in full. This put a significant strain on me. Once I started automating my tax savings, it made my life a lot easier and improved my professional and personal life.
It’s a good idea to open a separate savings account for your tax savings. You’ll be less tempted to touch the funds, and the money will be there when you need to submit a payment. If you’re ready to open a new savings …….