Though it’s a great creative outlet and gives me some extra cash for luxurious things (like traveling, new shoes, and manicures), freelancing isn’t always a breeze. Cue: taxes.
I consider myself to be pretty financially responsible. I have a retirement savings plan, invest in the stock market, pay my credit card bill in full every month, and thrive at department store clearance racks. But taxes are a whole other game.
Luckily, my trusty accountant (known to me as “Dad”) has been Turbo Tax-ing for me for the last few years. I’ve previously gotten sizable refunds, so this year, I was shocked to find out I’d be getting nothing…and instead, owed the government a good chunk of change. I’d been planning to upgrade my computer with the return I expected, but, alas, I wrote checks to the IRS.
As a freelancer, I got a stack of 1099s in the mail, chronicling my earnings for the various media outlets I write for. I started putting money aside last year to pay my 2017 taxes, and ended up transferring those funds to a high yield savings account. I earned about $100 in interest in a year, so I highly recommend it. (I used American Express.)
I feel like financial security is something that’s often overlooked, especially by millennials. My parents grew up pinching pennies, so they’ve always been frugal, a practice that has rubbed off on me a little. I have expensive taste and don’t think twice about the occasional splurge, but I get most of my wardrobe from low-brow retailers like Zara, bring my lunch to work 90% of the time, and have drastically cut back on fancy coffees.
Anyway, I guess the lesson here is that I should start saving for next year’s taxes right now. Sigh.