MindfulAction
New Member
- 19
So I've seen that the general advice is to put 20% of your commissions into a separate account to budget for chargebacks.
My plan:
I transfer 20% of my commissions into a savings account at the end of every month. I adjust the amount in the account on a quarterly basis so it equals 20% of my quarterly commissions.
Example: total commission from Jan-March was $50K and I have a balance of $10K in the account; no adjustment needed. Commission from Apr-June was $100k and now I have a balance of $30K in the account ($10K from end of Q1 and $20K from Q2). Since 20% of my most recent quarter is $20K I take $10K out as a bonus to myself.
My thoughts behind this: I'll know when I have "too much" in my chargeback reserve and can adjust quarterly. This way I won't have funds sitting in the account that don't really need to be there (which would happen if I just put away 20% each month and never adjusted it).
Does this seem like a viable strategy?
My plan:
I transfer 20% of my commissions into a savings account at the end of every month. I adjust the amount in the account on a quarterly basis so it equals 20% of my quarterly commissions.
Example: total commission from Jan-March was $50K and I have a balance of $10K in the account; no adjustment needed. Commission from Apr-June was $100k and now I have a balance of $30K in the account ($10K from end of Q1 and $20K from Q2). Since 20% of my most recent quarter is $20K I take $10K out as a bonus to myself.
My thoughts behind this: I'll know when I have "too much" in my chargeback reserve and can adjust quarterly. This way I won't have funds sitting in the account that don't really need to be there (which would happen if I just put away 20% each month and never adjusted it).
Does this seem like a viable strategy?
