Using a separate bank account for taxes saved my hide this quarter

I used to just wing it and hope I had enough set aside when April came around. After a $2,400 surprise tax bill last year I opened a dedicated savings account and transfer 25% of every payment into it right away. This quarter I actually had the full $3,100 ready with zero stress. Has anyone else tried the envelope method for dividing up their income?

3 comments

3 Comments

park.aaron18d ago

Setting up automatic transfers changed everything for me too lol.

henry_anderson5417d ago

That automatic transfer setup got me feeling all responsible and adult-like. I still manage to mess it up somehow by overdrawing my account on coffee runs the same week.

kai83917d ago

Honestly, is it the coffee that's doing you in or something else you're not tracking?