Serious question, my accountant said I should be saving 40% of every freelance check for taxes.

We were going over my numbers from last quarter and he pointed out I'd only set aside 25%. That extra 15% buffer is for the self-employment tax hit I always forget about. How do you all handle your quarterly tax payments without feeling broke?

4 comments

4 Comments

aliceharris1mo ago

Just open a separate high yield account and auto transfer that 40 percent immediately.

kellyallen1mo ago

But is that even worth the hassle for most people? Seems like overkill.

beth_kelly1mo ago

I actually used to agree with you, @kellyallen. It seemed like too much work for a small gain. What changed for me was setting up a single automatic transfer. Now that money just moves without me thinking about it. Seeing it build up over a few months made a real difference for my peace of mind. The hassle was just that first setup, and it paid off.

river_thompson6d ago

Man, people really act like missing a couple percentage points on savings is the end of the world... I get that every little bit helps, but some of us just aren't gonna see a huge difference from 4% instead of 3.5% on a few grand. If you already have your bill money set aside and you're not sweating the rest, is it really worth the headache of another account you gotta check on? I've got a buddy who spent a whole weekend moving money around for an extra $12 a year... seems like a lot of effort for a coffee.