Questions

To get a business bank account in the US, if you have a business entity like an LLC, the process is relatively pain-free.

Any income you earn from freelance work needs to be reported when you file your taxes. If you make more than $600 from a single client, they should give you a 1099 form. This will show how much they paid you so that you can file accordingly. Even if you don't get a 1099, you still have to report the income..

Waiting to outsource may not seem like a big deal.. until you realize how much time and effort can go into getting someone up to speed. If you wait too long, you may be so bogged down with work that you don't have time to evaluate candidates, teach them your processes, and then hand off tasks. But if you outsource too early (or for the wrong things), you may burn through excess cash that could've been better used elsewhere.

As a sole proprietor, if you receive business income, you’ll report the income on IRS Form 1040 (Schedule C). If you have business expenses to deduct, they will be included within that Form 1040.

Overall, finding your true freedom number is a highly personal process. Take some time to consider what you want work-optional life to look like, and then take the necessary steps to make the dream a reality.

Financial IQ #36

While it definitely depends on your situation, one general rule of thumb to get a rough estimate is to multiply your income times 10 + $100,000 per child for college expenses.

If you only have a little bit of low-interest debt, prioritizing investing generally makes sense because you may be able to earn higher returns in the stock market than the low interest rates on the debt.