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Solopreneur Profit Guide Series, #4: The Hack For Paying Present AND Future You

Welcome back to the fourth and final installment in our Profit Guide series, where we’re sharing the key steps solopreneurs should take before 2022 ends to increase your business profits by up to 10% without taking on new clients — or new stress.

Profits
November 15, 2022

Welcome back to the fourth and final installment in our Profit Guide series, where we’re sharing the key steps solopreneurs should take before 2022 ends to increase your business profits by up to 10% without taking on new clients — or new stress.

Missed the first 3 posts? Check them out in order:

Solopreneur Power Move Series, #1: Reclaim Your Profits

Solopreneur Power Move Series, #2: How Saying No Invites Joy (and Profit) In

Solopreneur Power Move Series, #4: The Hack For Paying Present AND Future You

Want the full checklist with all the steps? Get it below!

The final step in this series is to learn how setting aside money for retirement (AKA future you) can help you save on your next tax bill.

A true profit-first strategy includes investing in your future, because contributing to retirement accounts is the ultimate profit-increasing hack for the short AND long term. In the short term, you can get a tax credit for your contribution, keeping more money in your pocket overall. In the long term, compounding interest can turn your thousands into millions.

As a solopreneur, you get to take ownership of a lot of awesome things in your life: how you spend your time, who you work with, who you’re accountable to. As your own employer, though, you also have to make your own retirement plan.

This is a step that’s often overlooked or pushed aside, but there’s a few really good reasons for solopreneurs not to ignore saving for retirement. Of course, there’s the obvious: your future self will thank you when those contributions in the thousands compound into millions!

But did you know that self-employed retirement plans actually offer some pretty magical tax write-offs? By contributing $10,000 to a special retirement account called a SEP-IRA, you can save $3,000 in taxes next April. That’s basically the government paying you $3,000 today to put money into retirement.

Here's how you can take action right now towards increasing your profits while saving for retirement:

  • Calculate your eligible contribution and tax credit with the Ruby Money retirement calculator
  • Open a SEP-IRA account (we recommend Guideline)
  • Contribute before the April 15th deadline.

With those key pieces in order, you’ll be all set up to increase your profits right now AND save for later.

Marketing Manager
Isabel Sachs
Isabel Sachs is a Minneapolis-based freelance writer and content marketing consultant helping startups grow brand awareness via inspired content & the power of community.