What's 10 Percent of 20,000? The Answer May Surprise You!

Introduction

As business owners, we're constantly bombarded with numbers. Sales figures, profit margins, employee salaries - it can all be overwhelming. But there's one number that you absolutely need to know: 10 percent.

Why? Because 10 percent is the magic number when it comes to setting aside money for taxes. If you don't set aside enough, you could be in for a nasty surprise when tax time rolls around.

Calculating 10 Percent of 20,000

So, what's 10 percent of 20,000?

As you can see, 10 percent of 20,000 is 2,000.

Setting Aside Money for Taxes

Now that you know how to calculate 10 percent, you can start setting aside money for taxes. The easiest way to do this is to open a separate savings account and deposit 10 percent of your income each month.

This may seem like a lot of money, but it's important to remember that taxes are unavoidable. If you don't set aside enough money, you could end up owing the government money.

Success Stories

Here are three success stories from business owners who set aside money for taxes:

• Jane: Jane is a small business owner who makes $50,000 per year. She sets aside $5,000 per year for taxes. When tax time rolls around, she has no problem paying her taxes because she has already set aside the money.
• John: John is a self-employed contractor who makes $100,000 per year. He sets aside $10,000 per year for taxes. When tax time rolls around, he has enough money to pay his taxes and still have some money left over.
• Mary: Mary is a corporate executive who makes $200,000 per year. She sets aside $20,000 per year for taxes. When tax time rolls around, she has enough money to pay her taxes and still has some money left over to invest.

These are just a few examples of how setting aside money for taxes can save you money and headaches.

Conclusion

If you're not already setting aside money for taxes, I urge you to start doing so today. It's one of the most important things you can do to protect your business.