For someone with an inconsistent source of income (freelance artist, for example), how would you go about financing various things like social security and rent, which often involve monthly/regular payments (which people pay for with a certain percentage of their monthly income; in the case of freelance work that number would change every month).

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Posted by Abby Londa (MONEY FORUMS: 4, Answers: 0)
Asked on February 15, 2016 8:12 pm
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In terms of taxes, you should always put away at least 25% of all your freelance income to have available to pay your self employment tax (15.3%) and income tax. You should work to build up, in addition to covering your taxes, 6-12 months of your basic living expenses (rent, insurance, food) to cover these in your slower months. At first, make sure you put aside money for the following month’s expenses before spending money on anything else.

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Posted by Beth Tallman (MONEY FORUMS: 1, Answers: 61)
Answered: February 16, 2016 9:03 am
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