[Music] Zachary says, My wife recently got a well-paying side gig similar to her W2 income. Where is the best place that we can put this extra cash? We feel like we're doing well but also feel like the dog that caught the car. You know, you guys use that analogy of chasing the car. Now what do you do once you've caught it? So do you have any advice or thoughts for Zachary and his wife to consider? Step number one, Zachary, step number one. Whenever you have a side gig that does well, don't forget about taxes. And it's not just income taxes. It's not just income taxes. Don't forget about taxes. This is a tale as old as time. Someone starts doing a side gig, side gig, all of a sudden the year hits and they're like, Holy cow, we have so much cash laying around. It's amazing. I'm going to go do this. I'm going to buy that. And I'm going to invest this. I'm put it here. And then April rolls around and their

accountant says, Okay, hey, just finished up the draft of your tax return. Here you go. You owe, I owe how much money, and I owe it to what organization. And I got to send it where in the first years of profitability. Make sure that you accounting for taxes because that can be something that forces you into a bad place where you got to make really bad decisions. Now, assuming you've done that and you've accounted for the taxes, let's talk about the fund places we get to put our money. Now, also, it's not just income taxes. Remember, you have FICA and Medicare or self-employment tax. Are all the same thing. Is that that's going to be 15.3% on top of your income taxes. Like 15.3, I thought it was like 7%. Your employer pays half. So when you are the employer and that's what you are with a side hustle, you pay both sides of it. So just make sure you don't take that into account. Now, what B's talking about the fun stuff is um, one of the great things

when you have side income and you already have, you know, this doesn't need to go to Lifestyle. Why not look into some of the self-employed savings accounts? Solo 401ks have just gotten a new life with some of the new tax legislation. They've even kind of overcome some of those benefits that seiras used to have over solos. Now you can pretty much solo 401ks rock as long as you don't have employees and as long as you're very self-aware. That once they get over $250,000, you got to. You must file 5,500 tax forms with the IRS because they seem to be lifting the penalties or making it harder if you're not complying with some of those tax guidelines. So just be very aware that the at 250 even if you roll Assets in because a lot of you guys will use Advanced strategies like trying to do back door Roth contributions by setting up having a side gig and putting money in that 250 does not take names or it doesn't take prisoners. It just

crushes you if you're not paying attention. If you do do the this, a side hustle, let's assume you got a main Hustle hustle. If your main hustle has a 401k that you participate in, recognize that even though you might have a side hustle separate income, you only get one $23,000 that you get to put in. So if you're maxing out your 401K at work, you can't do a solo 401k and do $23,000. You can only do the profit sharing portion into that solo 401K. You do not want to run afoul of those rules. So if you're in a situation where maybe you're doing that and you do the 20-25% of profit sharing, whatever the number comes out based on your structure, there's nothing wrong with just investing in a regular old after-tax brokerage account, starting to build up after-tax liquid assets utilizing low-cost index funds. It's a great place for additional cash flow to go because

that can be opportunistic money. You get to use in the future, which is so so valuable.

Where Should We Keep Extra Cash from a Side Gig?

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