The one thing you should never do with a check

So you’ve been consulting for a while and a big check rolls in. Ka-ching! You’re set.

But there’s one thing you should never, ever do with a check.

In fact, if you do this one thing, the very future of your business may be uncertain, even if you’re commanding high consulting fees and you’ve got a long list of clients lined up. And you could find your business in ruins.

At Consultant Journal, we’re not normally doom and gloomers. We believe in the power of independent consulting. But we do know there’s one thing that can bring your business down.

Never, under any circumstances, cash that entire check. No matter how big or how small any check is, always put some aside.

No matter how successful your business becomes, you’ll always have to pay the Tax Guys come year-end. And you don’t want to be in a situation where your business earned more than ever before…but you haven’t got anything left to pay taxes and social security.

So always put some money aside. Talk to your accountant about how much you need or at least look at prior year’s taxes payable to estimate what you need to save for taxes. (And remember, you should always confer with your accountant or tax authority about taxes. At Consultant Journal, we can only guide you; we’re not accountants.)

And, remember, if you haven’t got an emergency fund to cover six to nine months of expenses, you might also want to throw some money that way.

Related to the one thing you should never do with a check