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Warning: A talk with my accountant about my quarterly taxes made me stop one bad habit
I was stressing about my estimated payment last Friday, and she asked why I never set aside money from each client check (you know, like a real business would). I'd been treating my whole bank account like my paycheck for two years, which is why tax season always hurts. How do you guys handle setting aside money for taxes without it feeling like you're losing it?
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drew_park1mo ago
Open a second account, move the tax cut immediately.
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Man, I read this article about treating tax money like a bill you have to pay to yourself. So now when a client pays me, I immediately transfer, say, 30% to a separate savings account as if I'm paying a vendor. It's not my money anymore, it's the IRS's money I'm just holding. Come tax time, it's already there and the hit doesn't feel as bad.
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amy_murphy851mo ago
Yeah that's a tough one. I just have a separate account and move a set percentage over right away. Makes it feel less like my money to begin with.
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