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nattarbox t1_j9g9uol wrote

My partner and I have both been self-employed for a bit, I do love it and will have a hard time going back to a regular job.. Flexibility for travel/vacation offset the annoying parts.

Here's a few tips that helped me:

  • Setup a bank specifically for receiving your invoice payments, separate from your personal bank. Every time you get paid, split the money you need for taxes out to the savings account. Pay yourself on a regular paycheck cadence from the remainder. That way your personal budgeting isn't messed up by irregular payments, and you always have your quarterly payments saved up.
  • Get a good tax person, someone friendly who won't mind emailing/chatting informally. Avoid a big corporate accounting place.
  • Insurance is expensive as hell, but also tax advantaged. Ends up being not so bad once you get over the sticker shock.
  • One thing that sucks is not getting paid when you're on vacation. I work around this by planning out my hours in advance for the month, so if I have some planned time off I can still get a view for the monthly income, where to make up those hours, etc.
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nottoodrunk OP t1_j9gghh7 wrote

This is exactly the type of insight I was looking for, thank you so much! My tax person is currently a family friend, I’ve been working with him since I graduated college so I feel like I’m a good spot there already. If you don’t mind me asking, how much did your health insurance cost increase by percentage wise?

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nattarbox t1_j9gjmcv wrote

I'd guess about 4x increase on insurance. ~$300 for my contribution to an employer plan, vs. about $1200 now, plus whatever dental costs. Also on a mid-tier plan, vs the premium one offered by the employer. That's for two people.

But again, insurance is 100% deductible, and so are most of your out-of-pocket medical/dental expenses, so ends up being not so bad. Still sucks to write the check.

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Linux-Is-Best t1_j9gcojp wrote

Opinion:

This is some sound advice, OP. As someone who has owned their own business in the past, I believe u/nattarbox has covered the basic.

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