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My setup wouldn't work for the majority of people, but I freelance and have set up a corporation. I pay myself a salary that's about 2x my rent. The rest of my
by puranjay 7y ago
My setup wouldn't work for the majority of people, but I freelance and have set up a corporation. I pay myself a salary that's about 2x my rent. The rest of my funds stay locked in my business account.
This forces me to limit spending. After paying rent, I only have about the same amount left over for personal expenses.
Any money left over in my personal account at the end of the month is transferred into a mutual fund.
- btrettel 7y agoWhat are the advantages and disadvantages of this setup?
- puranjay 7y agoI can't really speak to the financial or tax advantages of this setup - I've never been particularly good at these things. But the big advantage to me is behavioral. If I have just a limited amount of money to spend in my account, I spend, well, a limited amount. It's simpler and thus, easier to stick to than complicated rules that require more fiscal discipline