re: Basic finance questions for self employed

I would start by doing an a real budget with accurate numbers. The numbers you provided are not realistic and don't include costs for regular expenses like clothing, auto insurance, house supplies, yada yada yada.

After that I would focus on eliminating all debt. When you are self employed the income can go away in an instant. Your rainy day fund will be a lot more helpful the less debt you have. It will allow you to consider many more options if you have to change jobs than being stuck with something that pays as much or more than your current job. The lower stress levels can be worth it for many.