As we step into a new year, let’s take a look at potential financial steps for content creators in January.
The calendar has turned over once again and with that transition comes fresh new opportunities to fix up your finances this year.
Potential steps for Content Creators this month
Financial steps content creators might take in January include:
- Reflect and update your goals for the year ahead
- Quarterly estimated tax payments – due Jan 16
- Coordinating with a CPA for tax preparation
- Rebalance investment accounts
- Refresh your budget (personal & business)
1. Reflect and Update Your Goals for the Year Ahead
The creative journey is dynamic, with every day potentially changing your content strategy.
Your finances are no different.
In both your work & your money, I believe that taking a moment to reflect on your wins (no matter how big or small) from the past year helps to put things in perspective.
Our financial planning process is based on the goals of each individual client. This means that we start with the end in mind and work backwards from there.
So what were your standout moments in 2023?
What would make 2024 so incredible that it doesn’t even seem possible right now?
Use these questions to reiterate on how you’re getting to where you want to be.
Whether it’s expanding your audience, diversifying revenue streams, or buying your first home or paying off student loans, having well-defined goals is the baseline for making smart financial decisions.
2. Mark Your Calendar for Quarterly Estimated Tax Payments (Due Jan 16)
For many content creators, managing taxes can be a monumental undertaking.
As a self-employed individual, you bear the responsibility of handling your tax payments over the year (not just on April 15).
Circle January 16, 2024 on your calendar—it’s the due date for your fourth-quarter estimated tax payment.
Plan ahead for the future by allocating the necessary funds and paying quarterly payments on time.
One of the most common things we hear from new clients is “I didn’t know I had to pay those.” And with the penalties and interest that can get tacked on, it can be a costly mistake.
If the realm of taxes seems mystifying, we recommend consulting with a CPA tax professional who can offer clarity and prevent those unwelcome surprises.
3. Coordinating with a CPA for Tax Preparation
Just like you pay quarterly estimated taxes throughout the year, you’ll also need to coordinate your year-end tax return preparation.
Personal tax returns are due April 15 (this applies if you are an LLC, too).
Tax returns for business entities, such as S-Corps, are due March 15.
Quarterly payments are referred to as “estimates” because how much you pay is calculated on the income you earned in that previous quarter.
Then, at the end of the year, you take your final income and expense numbers for the year and calculate the total amount of taxes you actually owe. This is why you use the IRS forms like the 1040.
Finally, take this total amount of taxes owed and subtract it from the total you paid in quarterly payments over the year. The difference results in you owing more to the IRS or the IRS issuing you a refund for paying too much.
This step is critical for maximizing content creator tax write-offs.
It’s also critical in helping you determine the appropriate forms you need to file for your business.
This is where things can get crazy and costly.
If you make a mistake on a return, it can potentially cost you penalties, interest, and affect you for years to come.
Many times it’s worth the fee a CPA charges to have that peace of mind. That’s why we recommend working with a CPA tax professional to prepare and file your taxes for you.
4. Rebalance Your Investment Portfolios
Outside of taxes, other financial steps content creators can take in January include reviewing your portfolio’s asset allocation (a.k.a. the ratio of stocks to bonds in your portfolio).
The ratio of stocks and bonds in your portfolio can help forecast the returns you can expect. In turn, this drives how you achieve your investment goals.
So as things change in the markets everyday, the way your investments match up with your goals and risk tolerance changes too.
Occasionally, you need to go back in your portfolio and sell or buy stocks and bonds to get back to your appropriate asset allocation.
For example, if you want an 80/20 allocation of stocks to bonds, and your portfolio has naturally shifted over time to 70/30, you may want to consider rebalancing to match your goals, time horizon, and risk tolerance.
This step goes hand in hand with step #1 of this list – updating your goals, because you have to know what you’re working towards in order to choose the appropriate allocation.
January can also be a good time to review tax gain and loss harvesting opportunities that can come from rebalancing. We touched on this as well in the December financial steps for content creators.
If you’re unsure about how to match your goals to your portfolio’s time horizon and risk tolerance, consider seeking professional advice from planners like us.
5. Refresh Your Budget: Personal and Business Editions
Budgeting is the bedrock of financial stability.
It’s also perhaps the most cliche financial new year’s resolution.
Everyone “wants” to stick to a budget, and just like going to the gym, a lot of folks start each year saying they’ll be better about it this time.
The real solution here is finding what works for you. So instead of poring over how your income and expenses are categorized, think of ways you can change things around to make it easier and maybe even a little fun to look at.
In Conclusion: Here’s to a Year of Financial Empowerment and Creative Triumphs
We hope 2023 was a great year for you and wish you even greater success in 2024!
These financial steps content creators can take in January can help you get a jumpstart on your financial life this year. More importantly, we want them to help you use your hard earned dough in the way that makes you happiest.
Financial success isn’t just an aspiration, it’s an achievable reality. Here’s to making it a reality for you this year!
What’s Missing?
Is anything miss from this list? If so, please let me know!
If you’re interested in a review of your specific situation…
