A side stirring (or representations aside or self-employment) can help people achieve their goals financial and obtain a level of job security.
development of a second set of skills to bring money can not only help you build a nest egg in addition to your current salary, but also give you an income stream if you ever lose your employment.
But what should you do once you start earning a side income agitation?
Keep track of your money
The first step of the scramble side is to keep track of your income. You need to know who owes you money and how much you have earned each quarter.
In addition, you must keep your finger on the pulse of how your secondary concerts bring money.
It is rewarding to see your winnings range from a few thousand dollars in the first months or year to tens of thousands of dollars later in your freelancing career.
you can also learn how to determine when you need to adjust your rate.
You can keep track of your money with sophisticated software or a little more old school kick with a detailed spreadsheet.
Preparation for paying quarterly estimated taxes
it does not look like the sexy thing to do with your new income, but you must prepare yourself for Uncle Sam.
in fact, you might have to start paying tax quarterly estimated income on the money side of your agitation. That is why it is important to keep an eye on all your income and to set aside a portion of each paycheck to freelance for taxes.
You can use TaxAct to pay your quarterly estimated taxes as you do when filing your annual statement on April 15 (or April 18 for fiscal year 2015).
Repayment of debt
Some freelancers begin their side hustles on the desire to repay existing debt such as student loans, credit card balances or a mortgage.
If you have already put money from your salary to primary debt, you can use extra income aside to help destroy the balance faster and get back in the black.
more, payment of debt in a few years instead of decades will save a lot of money in interest.
If you use the side hustle income for the repayment of debt, remember to save some money for taxes. You do not want to have to dip into savings or an emergency fund because you are so aggressive with debt repayment.
Save, save, save
After enjoying a distance of about 25 percent of your income for taxes independent, save your money can help you achieve financial goals in much less of time.
focus on a dream European vacation, buying a car, save for the down payment on a house, having a baby or building your emergency fund to help you build value revenues of at least six months.
The money you save can be spread across different savings goals or focused on a specific target.
Don 't forget to go away in a savings account with an annual percentage yield higher returns than your level of 0.01 percent.
there are accounts offering 1 percent or more. About $ 10,000 in savings, it can be the difference between earning a dollar or $ 100.
live a little
A strong work ethic is important. If you have a regular job and start shoving side, you clearly do not need to be told twice about the merits of the work.
But do not forget to use your money for fun occasionally. Treat yourself by going to lunch when you would normally. Buy a latte or join a friend for a movie. Buy a bike, you've had your eye on or spend money on a class you've always wanted to take for pleasure.
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