A good rule of thumb is to set aside 30% of your earnings to pay your federal income and self-employment taxes and send payments to the IRS quarterly. You can use Turbo Tax or H&R block to easily file your taxes at the end of the year. Advertising Continue reading below Keep in mind that I am by no means a tax expert; I'm just sharing what works for me. You can find more information about paying estimated taxes here on the IRS website. The point is to dig in and figure out what you need to do - don't let tax scare hold you back. 9. Master fear Besides taxes, my second biggest fear was failure. What if I tried and it didn't work? For me, the path to overcoming this fear was to work out the worst case scenario. In two years, I had built a decent side.
I had one main client (it was SEJ!) and a fax list few smaller ones, and I was making decent money. Not six figures, but a decent amount. But what if it all dried up? It could happen. Well, I was a bartender for many years in college and waited on tables. Not a glamorous job, but it was something I was good at and knew it would pay my bills. Worst case scenario: I go back to the waiting tables. Not ideal, but not the end of the world. Advertising Continue reading below Working on what I would do if I failed gave me the courage to take the plunge. Determine what you need to do to control your fear. Otherwise, you risk making decisions based on fear, like taking on clients you know you shouldn't. 10.
Learn to recognize a Red Flag customer Some customers will cause more trouble than they are worth. You can usually see them coming a mile away. They ghost on you after you agree on a start date, then show up again ready to work. Then they want to change something in the contract. They may be rude from the start or condescending. (Here are a few more red flags to watch out for.) You'll feel your stomach clench every time their email pops up in your inbox. I highly recommend developing a script that you can use . "Sorry, I just don't think I'm suitable for your needs" or "I can't accommodate you right now, but I'd be happy to refer you to another freelancer.