Hey guys what is up and welcome back to My channel so today we are going to be Talking about how to manage money as a Small youtuber but more importantly how I manage mine money as a small youtuber Small bloggers small influencer and I Just want to share my experience because I remember my first year as a blogger When I was making money I didn't really Know how to properly manage it and how To keep track of my records and all of That stuff so there was a lot that I Honestly want to cover in this video but I do want to say I am NOT an accountant I am NOT a lawyer I do not specialize in The things that I'm going to be talking About I just want to share my experience With you guys so that's why this video Is titled how I manage my money as a Small youtuber and I just I want to Share the things that I have learned Along the way to hopefully help you out But I do want to let you guys know Before you get too far into this video That this video is in collaboration with Annie and hey guys my name is Annie I Run the YouTube channel my gal over on My channel my content is focused on Growth and social media whether it's Instagram YouTube a blog as well as Entrepreneurship on social media so if You've ever wanted to turn your YouTube Channel Instagram or blog into a Business or income stream then my
Channel is definitely the hub for that So I hope to see you over there sometime Soon and other than that I hope you Enjoy Cochran's video bye And I am honestly it so excited because She is sharing her experience working With companies and getting sponsorships As a small influencer so if you want to Learn more about how you can land those Opportunities and possibly make more Money definitely go check out her video It is included in the description bar Down below but otherwise let's just go Ahead and get into it So I have got a list of the things that I want to cover here and I do want to Let you guys know that if you are more So AF blog post reader you'd like to Read articles I will include an article And then description bar down below that Kind of goes over what I'm going to Cover in this video because I talked About this on my blog almost a year ago At this point so if you want to check That out it is included in the Description bar down below but when it Comes to managing your money as a small Influencer and small youtuber blogger Whatever you are you really need to keep Your records and the first thing you Need to understand is where's your money Actually coming from so you might know All of your income streams whether you Have paid products whether you're making
Money From ads like Adsense or YouTube ads Which goes through Google Adsense Affiliate marketing or working One-on-one with companies like Sponsorships and stuff like that you Need to understand where your money is Coming from so is it a direct deposit That's going into your bank account are You getting paid for PayPal but you then Have to transfer and your bank account How does that really work and that's one Of the first things you need to buff out Is how is that money actually coming to You and when is that money coming to you Because every single time that you Receive a payment you need to document It you need to keep your records and Actually let me show you guys here so This is my folder that I have from 2017 And in here holds all of my documents my Invoices every time I was paying all of My expenses this is my paper trail so This is 2017 2018 is upstairs and they Have 2019 currently in the works in my Little shelving unit over there but in This file I have everything documented so that I Have records and this is my first tip That I want to recommend you guys is Once you are making money and even Before you are making money you need to Be tracking all of your income and all Of your expenses I'm going to talk about
Expenses on a little bit and why that's So important but in terms of your income You really need to know how much money You are making back in 2017 This is all I had when it came to my Documents yes I keep all of my emails of The expenses that I have so like Convertkit teachable and some of the Other ones like now QuickBooks Those are my monthly expenses and I get Billed for those every single month so I Ever seen email invoices for those but I Will also print out those invoices do I Have a paper trail right here Just to kind of cover my butt in case I Lose those emails I've got the Documentation but in 2017 this is all I Had I just had this to keep my records And I actually used Google sheets to Track my income and my expenses but when It came to the time to do my taxes Thankfully Alex was an accountant at one Point in time and now he actually works In the finance industry so he still Really understands the whole money thing You know he really helps me out with That for sure but when he was doing my Taxes my first year it was harder for Him because my documentation although it Was good although I kept my records it Wasn't as good as a So I ended up purchasing QuickBooks and I now pay monthly for QuickBooks I have Got their self-employed plan and I
Absolutely love QuickBooks because it Helps me to track all of my income all Of my expenses and properly organize it In areas that they need to be organized You know so all of my expenses are Broken down into the appropriate Category so I understand where my money Is going and what money is coming in now This isn't just great for your own Records to know what's going on with Your money it's also very important for Taxes now I'm specifically going to talk About my experience with taxes and what I have to go through as a citizen of the United States as well as I'm currently Living in New York State so I have to Pay the IRS as well as New York State in Terms of my taxes so I have to what Different kind of taxes that I have to Pay if that makes sense to you guys so Here's the deal when you are a youtuber Or a blogger and you're making money on Your own you know you're not receiving a Normal regular paycheck like you would Do if you had a part-time job at like McDonald's or something when you work at McDonald's they take taxes out every Single paycheck and you will see that on Your paycheck and will say how much Money went to your taxes and then the Money you receive is actually money in Your pocket you get to keep that is not What happens when you are a blogger or Youtuber money is not taken out for your
Taxes so every bit of money that you Make you have to realize that it's not Just money in your pocket you have to Save money to pay your taxes later on Based off of my experience the first Year that I started blogging I still Have full-time jobs so I was paying Taxes normally on that full-time job and Then I wasn't paying taxes from the Income that was coming in on my blog Until the end of the year until the end Of the tax season when I had to pay my Taxes and that wasn't a big deal because I wasn't making much money the first Year now that I am doing this full-time And in making a decent amount of money I Have to pay my taxes quarterly and again I'm sharing this based off of my Experiences so if you google when you Have to pay quarterly taxes or when the Pay dates are due you will see that There is a pay date in January in April And then I think it is July and September and what that does you are Giving part of your income to the IRS And to your state to pay for your taxes To pay for what you already made and Just that quarter now honestly guys There's really detailed calculation that Goes into it in terms of how much you Have to pay for your quarterly taxes to Make sure you are paying enough by the End of the year in terms of how much Money you have made and it gets very
Very complicated and again I am NOT an Accountant but I pay my taxes quarterly Based off of the income that I have made That quarter and what it looks like the Projected amount of money I'm going to Make in a year and the amount of taxes That I am going to owe when it comes to Your taxes you have to save about twenty To thirty percent of what you are making To give back for your taxes so let's say I'm making $2,000 not all of that $2,000 Is money in my pocket like I already Said I just save about twenty to thirty Percent to pay for my taxes now it Depends on what tax bracket I'm in how Much money I'm going to end up owing and If I only make $2,000 for the year guys And then when you deduct your expenses And all that stuff which I want to talk About deductions next I may not Oh Barely anything for my taxes but it's Good to be safe and save twenty to Thirty percent because that's gonna be The max that you're gonna have to owe so You just want to cover your butt and if Not then you just have money in your Savings account which is honestly just Really good money management now I Already brought up deductions so I think That is so important to talk about when You are keeping track of your records You need to keep track of your income And your expenses and the main reason Why you need to keep track of your
Expenses is because of your deductions Now I actually found this quote today Because I wanted to make sure I was Explaining it properly to you guys so This is from a blog post that I found Actually on QuickBooks this says Essentially a tax deduction is an amount Of money the IRS allows you to subtract From your adjusted gross income in order To reduce your taxable income now let me Break that down for you guys because I Understand that this can be confusing so The expenses that you have for your Business let's say I specifically bought This journal for my business and Actually I did the only thing that used This journal for is my business this Holds all of my business notes YouTube Video ideas stuff like that I can Actually write this off as an expense And that means that it is a deduction so Let's say that I made again we'll go With that $2,000 so let's say I made $2,000 Ended up having $500 in expenses for the Whole year so what you do you take your Income minus your deductions or your Expenses so let's say I made the $2,000 Subtract the $500 now I've really only Made $1,500 so I've made $1,500 that is Actually the only amount of money that I Am going to be taxed for so I'm not Getting taxed for the $2,000 that I made Because I had those five hundred dollars
Worth of deductions I'm actually only a Tax for $1,500 which really can help in Terms of how much money you owe the IRS And your state so one thing that Alice Continues to tell me is I want my Expenses to be pretty high because That's going to bring down how much I Owe in taxes so if you think about it Either you can pay money to taxes which You need to pay your taxes no matter What or you can invest that money back Into your business which is going to end Up reaping more benefits for you Compared to paying your taxes yes no Matter what you're gonna have to pay Your taxes and you do not want your Expenses to be more than your income but You want your expenses to be relatively Close so let's say I'm making about 50,000 a year I would want my expenses To be more so to like the 20,000 mark Compared to the 10,000 mark because then That's going to change how much I owe in Taxes and I received more of a reward by Investing in things like my mac book Like investing in my camera right here So I definitely do invest back in my Business and I take that into Consideration so let's say that you're a Small youtuber and you want to bring Down your taxable income by investing Back in your business and having those Deductions having those expenses within Your business when I invested in my
Camera that I am shooting on right now I Think I paid $650 for this camera that Is a deduction that I can write off with In my business which brings down my Taxable income so some simple things That I end up writing off is my website Any of the website expenses that I have Tailwind convertkit QuickBooks any of Those monthly payment subscription-based Things that I am a part of that helped To run my business I can write all of That off in terms of my taxes which ends Up helping me in the long run so I Really do think it is important to Invest back into your business for that Reason and I hope that I did a good Enough job explaining that if you Wanna learn more I will include the blog Post that I got that quote from in the Description bar down below I hope you Guys liked this video and found it Helpful I know it was just really a Chatty video and I just wanted to share My experience with you guys because when I was getting started as a blogger and I Was making money I mean my records were Not great and I didn't understand the Whole deduction thing I mean I could Have been writing off so much that I Didn't even know about at the beginning Because I just wasn't educated on this Topic so keep good records I'm telling You it's going to help you in the long Run I hope you guys liked this video and
Found it helpful if you did make sure You give it a thumbs up and subscribe to My channel down below if you want to Watch Annie's video I will include it in The description bar it down below as Well but otherwise I'll see you guys Back here soon thanks [Music] You [Music]