How do you save for taxes?

[Becky Hoffman]

Do you open an account to escrow your tax costs or is there another way? I'd rather not have to open another bank account if possible. 

[Kevin Sobilo]

@Becky Hoffman, MORE BANK ACCOUNTS!

Why would you not want to open another bank account? It is easier to budget things if the money is separated. Allow the bank to do the work rather than you needing to track money intended for different purposes all mixed into one pot.

As a different example altogether, when I rehab a property, I deposit the budgeted money into a separate bank account and all expenses for that rehab are paid out of that account. That makes it easier for me or my bookkeeper to identify what those expenses are for and also for me to track progress on whether I am on budget or not without having to put a bunch of effort into that.

I recommend this book which is amount how to manage your cash. I use this system and even my bookkeeper uses it for her business.

https://a.co/d/1tnzkhy