It's not uncommon to have irregular income as a business owner or self-employed individual. But with different amounts of money coming in every month, how can you budget, invest, or plan? Some months you’ll make a killing, while other months may have huge burn rates. How do you gain financial clarity when running multiple businesses with multiple income streams? What about becoming debt-free? Is it possible with such inconsistent income?
This is how Eric Dunn has been feeling lately. After paying off a significant sum of debt, Eric has seen his income slowly rise and needs help ironing out his finances before he can invest in real estate. Eric has numerous businesses that haven’t been given the accounting love they deserve. Not only that, Eric has been trying to get his safety reserve up to hold himself over during the lean months of self-employment.
Mindy and Scott work with Eric to build a financial framework that allows him to scale simply and with minimal effort. They also talk through self-employment tax, financial planning, safety reserves, renting vs. buying real estate, and more. If you’re a regular listener, you probably have more than one stream of income (or will in the future) making this advice worth its weight in gold so you don’t make some of the mistakes Eric is trying to avoid!
In This Episode We Cover
Paying off consumer debt and using it to propel forward your financial position
Separating business and personal expenses so tax time is headache-free
Financial planning and analysis, plus using it to model and predict future income
Self-employment taxes and quarterly tax penalties that you can avoid as an entrepreneur
Whether to rent or buy a home in today’s hot housing market (and strategies for both)
Why your emergency fund is meant to be spent on the right things
And So Much More!
Check the full show notes here: https://www.biggerpockets.com/blog/money-286
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