[Cecile]

I like option 1 but am uncomfortable with the fact that you don’t have any savings at all. Are you living paycheck to paycheck?

Have you reviewed your current budget to see if there’s any room to cut?

Any chance of taking on a side hustle?

Anything that you can sell to generate more income? Do you have any debt?

Kind of difficult to give you advice more information about your expenses.

[Stephanie]

I choose option 1. But you need to find a way to not live paycheck to paycheck in the future. Paying taxes throughout the year seems like a better way than waiting until Q4 where you’ll end up with penalties.

That said, if you miss putting money into your 401k this year up to the max, you can’t put money in for that calendar year again.

Depends on how quickly you can recover in the new year from the taxes you’ll pay.

If you can’t recover then Option 3.

[Dani]

I would choose the option with the least penalty… and for your budgeting and planning next year asses where your $ is going & see what adjustments can be made to spend less.

Then immediately start saving for your emergency fund, put everything in the first 6ish months towards that.

[Van]

If it was me Option 1. Then I’d open up a credit card with a good sign on bonus and 0% apr that earns cash back to offset some of charges to pay taxes.

[Callie]

I would choose option 1. As a self employed individual I have a separate tax savings account that I deposit estimated payments into each month.

It’s extremely helpful and I would highly recommend that going forward.

[Rick]

Option #1 but only if you cut your expenses immediately to being funding a tax payment sinking fund.

[Author]

Posts