As a business owner, saving for taxes was a real challenge. When the end of the year rolled around I was caught off guard by my tax bill. My intention was to add to my retirement but never had the luxury of “left over” cash after the tax bill was paid. Finally after 10 years I have found the trick that prepares me for the end of the year and leaves money left over to put into my 401k. While it takes discipline, it is well worth it. Here it is: when your revenue checks come in, immediately take 50% of the total and put it into an account that is not easily accessible. I found a 0% fee account and did not get a debit card to access funds. To get the $$$ out I have to make a trip to the bank and that is enough to protect the dollars. With 50% set aside I can pay my tax bill and get close to my maximum contribution to my 401k.
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