Fellow self-employed MTers: Planning for Varying Monthly Income

I would make sure I had a 6-12 month reserve fund for expenses.

Set aside the worst case amount for taxes and put it in a safe short-term investment like a 3 or 5 month CD. Whatever you don't need to send in each quarter is gravy and can be moved to the investment column.

Invest in index funds or stocks since you can tap those without a penalty if needed.

I've been unloading my RE to give me a nice cushion. I have separate account from each check that goes to taxes. 35%

This year, for the first time have been putting 50% of my post tax $ into the market.

Are you not setup as an LLC taxed as an S-Corp and paying yourself a W2?

I allocate the majority of my W2 reasonable salary to cover taxes and still add a buffer when I take distributions out to cover monthly expenses and investments. All in, I plan about 30% to never be mine. I wish I had gone the S-Corp route 2 years earlier. I was bent over a barrel on self employment taxes by not doing so.

That said, my accountant was both pleasantly surprised and thrilled when he told me how much I owed at tax time and I told him great, I'll cut those checks today. Had always been putting 30% in a savings to cover that #.

I pay myself 1000/week, which is enough to pay bills and have some fun, the rest is invested. I also keep a nice cushion in a high yield savings account for emergencies.

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You dipping out of RE? Dont blame you. I'm up to about 28 units. Having my brother manage them now lol. Too much god damn work

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Yep, worked my way to 10 single families and down to a couple.