There are some problems I'll wrestle with myself.
Taxes are not one of them. 😅
Taxes can feel like a maze designed by accountants, lawyers, and a few very determined squirrels with calculators. When it comes to that world, I'm perfectly happy to bring in a professional guide.
But there's one system I recommend to keep things simple during the year.
The 33 / 33 / 33 Method
Every dollar that comes in gets split three ways:
• 33% → Operating Costs
This covers the tools, software, marketing, and expenses needed to run the business.
• 33% → Taxes
Set this aside immediately so tax season doesn't feel like a financial ambush.
• 33% → Income
This is what you actually pay yourself.
Why This Works
The magic is in the tax bucket.
By setting aside taxes throughout the year, you avoid the panic of a giant bill showing up later. Even better, that money quietly grows your emergency buffer while it sits there waiting for tax time.
Think of it like building a financial sandbag wall before the storm hits.
When April arrives, instead of saying:
💥 "How am I going to pay this?!"
You're saying:
😎 "Already handled."
⚡ Credit Avenger Question
How do you handle taxes?
Do you:
1️⃣ Set money aside throughout the year
2️⃣ Deal with it when tax season arrives
3️⃣ Outsource the whole thing and sleep better at night?