1 Exercise to Add to Your Day For More Energy + 7 Money Moves That Have Been Essential as a Solopreneur

I'm no financial pro (so be sure to speak to yours before making any major changes), but here's what's working for me in terms of benefits, retirement and beyond.

Hi all,

What a weekend! As an Iowan and a woman, it has been especially exciting to witness all of the well-deserved buzz around the Hawkeye women’s basketball team. Even though I proudly attended Iowa State, I can fully admit that their talent, dedication and passion—not to mention the example they’re setting for girls around the world—is quite incredible.

Looking back at the 2 weeks that have commenced since we last chatted about my recent nutrition conference and go-to high-protein snacks, it’s been a beautiful blend of pitching, research and writing on the work front, plus several strong workouts, quality time with friends and family and dinners out (Either/Or and Oak Park were exceptional, as usual—a couple sneak peeks of their menu highlights below!). The fortnight also included a couple yearly healthcare appointments, calls with three aspiring or up-and-coming writers and, of course, a bit of basketball-cheering for good measure.

Although this happened about 4 weeks ago, it’s been a relief to have officially filed my 2023 taxes and paid my Q1 2024 estimated taxes so I’m all squared away until June. With that nice milestone behind me, and just 1 week until the U.S. tax deadline, I thought this might be a great time to dive into a topic several of you have expressed interest about here and on Instagram: Money as a solopreneur. 💸

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What to Read…

But before we got to that discussion, I’m delighted to share 17 just-published stories that span from fitness tips to travel product guides to TikTok food and drink trends. (The latter might sound wild—who adds milk to wine or chops up their bagel toppings into a messy-looking mash?—but what we learned about the origin of these fads might have you reconsidering your first impressions.)

As you sit in front of your computer or phone, take a moment for a quick body scan. Are you feeling stiff in any areas? Or could you use a quick energy boost? Read the first link below, stand up a crank out 1 minute of inchworms, then come back and join us. Chances are high you won’t regret it, and you will be able to devour the rest of this email—and the rest of your day—with a bit more mojo.

• Peloton: Why the Inchworm Exercise Is So Much More Than a Warm-Up Movement

• Peloton: Yes, You Need to Build Sprint Workouts Into Your Running Routine. Here's Why

• Allrecipes: I Won a Baking Blue Ribbon at the Iowa State Fair, All Thanks to This $15 Tool

• Allrecipes: Hoda Kotb Says a Trip to This Chain Restaurant Would Be Her Dream First Date

• Allrecipes: Chopped Bagels are the Breakfast the Internet Can't Stop Making

• Better Homes & Gardens: The 3-Ingredient Steak Recipe Stanley Tucci Grew Up With—And Still Makes Today

• Better Homes & Gardens: How to Thaw Frozen Salmon Quickly, According to Seafood Experts

• Better Homes & Gardens: Is Buttermilk Essential for Better Pancakes? Our Test Kitchen Gives a Verdict

• Better Homes & Gardens: TikTok Is Mixing Red Wine with Milk—And It Actually May Not Be a Bad Idea

• Better Homes & Gardens: Can You Eat Sprouted Garlic? Yes, But There’s a Catch…

• Better Homes & Gardens: How to Wash Strawberries (Plus 3 Berry Washing Hacks That Are a Waste of Time)

• Better Homes & Gardens: What Is Arugula? Discover What Makes This Leafy Green Special

• Better Homes & Gardens: Should You Wash Steak Before Cooking? Here's What Experts Say

• EatingWell: The Best Time to Take Vitamin D for Maximum Absorption, According to Health Experts

• EatingWell: This 1-Ingredient Upgrade Makes Every Chicken Dinner Better

• Veranda: The 9 Best Travel Tote Bags to Take on the Go, According to Experts

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What to Consider…

Taking a peek at your financial plans

Making the leap from on-staff to freelance life was extremely frightening for me for many reasons, all of which boiled down to one umbrella issue: Money.

• What would I do for insurance?

• How about a retirement fund?

• How in the world do I even start to climb the mountain that is taxes when they’re not being taken out of my paycheck?

• And how does cashflow work when there’s not a steady amount being direct-deposited into my bank account every 2 weeks?

With more than 5 years now under my belt as a solopreneur, I’ve made many mistakes…or if you’re glass-half-full like me, I’ve encountered many teachable moments that I’ve learned a lot from. 😊

I’ve had even more times when I’ve been able to beam with pride, though, as I proved to myself (and hopefully to a few other dreamers) that it is possible to design what financial expert Ramit Sethi calls a “rich life” as a freelancer.

Here are a few things that have been paying off for me:

1. Think ahead to retirement. One of the very first calls after I put in my notice at my full-time job was to my friend and financial advisor, Danny. I asked, worriedly: “What do I do with my 401(k) and how do I start saving for retirement on my own now that I don’t have that generous company match?” He kindly sat me down, told me my financial situation was not nearly the mess that I feared it was and explained how he could help me roll things over into an IRA. Using my current savings as a starting point, he worked backwards from the date I hope to retire(ish) and told me exactly how much I should start putting away each month to have plenty to cover my needs and desires—and more to leave to my nieces and to charity when I pass. With compound interest working in my favor, this monthly figure was far less daunting than I had imagined. We set up an auto-deposit from my checking to that retirement savings account, which I don’t even miss. Since, I’ve scaled this figure up as I’ve gotten more settled into freelance life. Still don’t miss it. 😉

2. Keep tabs on billing. This will vary by industry and the scope of your work, but I have hundreds of invoices working through various workflows and companies each year. Although I wish these could be tracked in something like QuickBooks (and if that works for your business, amazing!), the way my billing works is a bit too complex to outsource to an automated tool. So instead, I track this internally in a Google Sheet, which I diligently update with each assignment, rectify once items are paid and review on a monthly basis to insure that I don’t need to follow up about any outstanding items.

3. Sock away money in a HSA. As for insurance, I turned to the HealthCare Marketplace—literally thanks, Obama—and signed up for policies that were quite similar to those I had secured through my employer. The ideal medical scenario will vary based on of if you’re single or part of a family, if you plan to have kids, if you have any chronic conditions, etc., but my high-deductible medical plan and dental insurance have worked well for me for the past 5 years. I was even able to stick with my same doctors and dentist! To offset extra expenses that may have been covered by a lower-deductible corporate healthcare plan, I aim to max out my possible health savings account (HSA) contributions each year. (FYI: Individuals can contribute up to $4,150 and families can contribute up to $8,300 in 2024; record high amounts.) Unlike a flexible savings account (FSA), HSA funds can roll over into the new year and never “expire.” I use this tax-free money on everything from contacts to concussion exams and co-pays to cavity fillings.

4. Outsource to the pros. In addition to Danny’s investing brilliance, accounting whiz Shelley is my ace in the hole come tax time. I rely on her to help me determine what to expense, what to estimate throughout the year and what to pay based on my earnings and income bracket. It sounds silly, but each time I drive on a newly-paved road or hear about long-overdue teacher raises, it reminds me that I’m proud and glad to be able to contribute my fair share.

5. Pay quarterly taxes. Keeping on the tax theme, with each project and every time I negotiate rates with a client, I try to remember that only about two-thirds of every dollar I bill is actually mine to keep. Unless you want to get fined by the IRS, it’s important to submit quarterly tax estimates if your taxes aren’t automatically coming out of your paycheck. Shelley comes in clutch once again to help me know how much to submit every 3 months to both the Iowa Department of Revenue and the IRS.

6. Use data to help forecast. “The only constant in life is change,” Greek philosopher Heraclitus once said. However, after a year in business in most industries, you should have some helpful evidence about what to anticipate moving forward. A few years in, I actually decided to set an “income cap” of sorts, to act as a vivid reminder that there is such a thing as enough, and I need not always have a scarcity mindset around money. This has personally been a game-changer for me to know how many projects to take on each month to more than cover my needs, to fund plenty of fun and to still allow for enough breathing room for time for family, friends, philanthropy and taking care of myself.

7. Allow yourself to enjoy the sweet rewards. Early on in my solopreneur days, those scarcity voices were ~loud~. So I lived in a cramped one-bedroom apartment, drove an “it’ll do” car and rarely invested in items or experiences that felt like a splurge. It felt gluttonous and foolish to use the money that future Karla might need. But that income cap concept was a total game-changer, and taught me that future Karla is covered and doing A-OK, and this wild and precious life—the only one we get—is meant to be enjoyed now, too, not just later.

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