Novelist John Scalzi, who has earned a buck or two from writing, has written a damned fine post about money management for writers. I spent a few years figuring this stuff out myself -- the hard way -- and really wish I'd had this around when I started earning my living from writing.
4. Your income is half of what you think it is.
When you work for someone, the employer withholds your income and Social Security taxes for the IRS, pays part of your Social Security, automatically deducts for your 401(k) and health insurance, and (if you’re not an idjit) also kicks in a bit for the 401(k). When you’re a freelance writer, none of this happens. The problem is, lots of writers forget that and spend everything they get when they get it, so when taxes come due (which is quarterly, because per the earlier notation, the government quite sensibly doesn’t trust freelancers to pay their taxes in one lump sum) lots of writers go “oh, crap” and have to suck change out of sofas and the few remaining pay phones to square the debt. This is also why many writers never get around to funding IRAs or other retirement vehicles, and spend their lives hoping they don’t slip or catch cold or get hit by a taxi, because they have no health insurance.
Simple solution: Every time you get a check, divide it in two. One half is yours to pay for bills, rent and groceries, and if there’s anything left over, to play with. The other half, which you deposit into an interest-bearing account of some sort, goes to federal, state and local taxes and your Social Security taxes, and anything that’s left over goes to fund your IRA (do the Roth IRA, it’ll pay off in the end) and, if you’re not lucky enough to have either number two or three above, your health insurance (have a day job or a spouse with bennies? Save it anyway. Be one of the wacky single-digit percent of Americans who actually save something in the bank. Also, and more usefully, that money you’re saving becomes a “buffer” for the times when you have bills but no income on the way. The buffer is your friend. Love the buffer. Fund the buffer).
In University of Pennsylvania psychiatrist Jody Foster’s new book The Schmuck in My Office: How to Deal Effectively with Difficult People at Work, she shares sound advice on dealing with narcissistic co-workers. From an excerpt at Quartz: On a day-to-day basis, appealing to this person’s egocentricity can be very effective. The occasional recognition of the […]
Kory Stamper, author of the new book Word by Word: The Secret Life of Dictionaries describes three criteria Merriam-Webster uses for inclusion of words like truther, binge-watch, photobomb and the 1,000 other words that make the cut in a typical year.
I read pretty much every Disneyland history and fact book I find. Chris Strodder’s The Disneyland Encyclopedia: The Unofficial, Unauthorized, and Unprecedented History of Every Land, Attraction, Restaurant, Shop, and Major Event in the Original Magic Kingdom lives up to its massive title. A simple alphabetical listing of just about every First through Fifth order-of-interest […]
Although flagship smartphones are unlikely to adopt heavy-duty outer casing anytime soon, you can always prepare your device for the outdoors with a beefy case and and an external battery like this Nomad Tile Trackable PowerPack, available in the Boing Boing Store for $119.95.The Nomad Tile can fully recharge an iPhone 7 over three times […]
Even though credit cards now feature an EMV chip for securing transactions, they still have to include the magnetic strip for compatibility with older point of sale systems. Because of this, there’s no way for the chip’s new security capabilities to protect against card skimmers in the wild.How do you protect yourself from legacy-technology-induced fraud? […]
As the old saying goes, “You should sit in meditation for 30 minutes every day. Unless you are too busy, in which case you should meditate for an hour.” Since most of us have an endless list of things to do and people to see, carving out quiet time can feel impossible, especially when most […]