Galen, Author at Pajama Pants Finance

30Apr 2018 by Galen

How to file a 1099 for contractors

Hey want to know something important for business that basically no streamer does? You’re supposed to file a 1099-MISC for any contractor you paid more than $600 in a year. That emote artist? Yup. Your manager? Yup. Your lawyer? Yes, but on the 1099-NEC. Housekeeping EIN: Employer Identification Number. The thing you want to do a free filing for so you don’t have to give your contractors your Social Security Number. W-9: The form you should have sent your contractors to get their official information including Taxpayer Identification Number (TIN), address, and legal name. When do you need to file a 1099 I kind of spoiled it in the introduction, but you’re supposed to file a 1099-MISC for any contractor you pay more than $600. You could also do it…

17Apr 2018 by Galen

Life Insurance for Streamers

Insurance

Today’s topic is life insurance. The good news is that many of you won’t really need life insurance. However, it’s better to know that you don’t need something than it is to never consider it. A note: this is focused on the US when it references any laws. Also, I don’t sell any insurance so I get no monetary benefit from you buying something. Life Insurance Basics Life insurance pays someone (clearly not you) money when you die. Its main purpose is to cover someone who was economically damaged by your death. A little morbid, huh? That’s the reality of it though. Better to think about it and deal with it than have something unfortunate happen and be caught unprepared. The secondary function of life insurance is to pass on…

09Apr 2018 by Galen

Bookkeeper vs Accountant

Running a Business

Today we’re going to talk about the difference between a bookkeeper and an accountant with the goal of showing you when you might want or need their services. Their work is extremely boring but necessary and helpful. Part of me takes a sort of sick pleasure in all of the moaning and groaning I hear from streamers around tax time. It’s an “I told you so” kind of thing. Is there a word for that? However, it mostly causes me pain. I don’t want you guys to suffer through tax time. It’s especially rough for streamers since so many people didn’t set out to run their own business. Additionally, you’re in an industry that the IRS has barely heard of so it can be hard to find resources to help…

26Mar 2018 by Galen

Earning like Ninja

Galen's musings, Running a Business

I think it's cool that Ninja's been doing so incredibly well. He’s on a roll with the awesome Drake co-stream, a phenomenal interview on CNBC, and just generally being a good guy while shattering records. Heck, I'm willing to bet that CNBC dramatically underestimated Ninja's monthly income when they said he's making $500k a month. I'll go into that in a sec. I also want to cover why while it's possible to make that much, it's hard to do. We'll go into the numbers on a couple of different scenarios. The critical thing to recognize with each of them is that even the smallest case I'll discuss is still easily in the top 1% of streamers. Streaming isn't an easy job. You work regularly 8+ hours a day ON CAMERA…

19Mar 2018 by Galen

In what order do I save my money?

Personal Finances

We’ve covered it before but saving early can yield HUGE results over the long term. You benefit from building good habits, getting compound growth on your side, and from actually saving up money. However, one of the most common questions I get from clients is about where to save their money. After all, you want to have some in the bank so you can use it for day to day living but having it all there is likely a bad idea. As always, this is general advice and there are many things that could impact the actual order you use. Account types First, check out this article for a rundown on the different types of accounts that are available to you. It’s a pretty long article but it’s super helpful.…

12Mar 2018 by Galen

Retirement Accounts for Streamers

Personal Finances, Running a Business, Taxes

Moblord's Mean Retirement Intro: Look, you're probably a great broadcaster. People like you. People sub and donate to you. But what I'm about to say is going to seem pretty harsh: You almost certainly won't retire as a career-long broadcaster. Really not a reflection on you personally as much as it is just a numbers game. Less than 1% of broadcasters are partners and less than 1% of partners made over $20k last year. It's similar to the kind of numbers from sports or acting, so not totally unique, but it's rare to hear anything but the winner's stories told. Those who don't make the 1% of the 1% go on to do other things with the rest of their lives and it becomes just a great story for the…

05Mar 2018 by Galen

Streamer Tax Calculator Updated for 2018!

Taxes

I’ve updated the Twitch Income Calculator for 2018! This week we’ll cover what the tool is useful for as well as what it lacks. The new tax law (which I’ll call TCJA in this article) added a lot of new, cool benefits for business owners. However, it also added a lot of complexity. Let’s dive in. [otw_shortcode_button href="http://pajamapantsfinance.com/wp-content/uploads/2017/02/Stream-Income-Calculator.xlsx" size="large" icon_position="left" shape="square"]Stream Income Calculator[/otw_shortcode_button] What it does This tool is awesome for putting together a very rough estimate of what you’ll owe in taxes from your streaming business. It asks you to enter some numbers that you either should be able to pull from your dashboard or should be able to recreate pretty easily. You can use that rough estimate to put together a savings plan to…

26Feb 2018 by Galen

Organization

Running a Business

This post was inspired by yesterday’s YourBrandYourBusiness show where PetraCat joined us to discuss organization. As we said in the show, with organization there’s an element of “I know it when I see it” but it’s hard to strictly define. That being said, it’s really important for a business owner and especially a streamer to be organized. Let’s cover some of the benefits of being organized plus some of the tools I use. Benefits of being organized The first benefit of being organized is that it reduces your stress. You know where things are, what you have to do, and by when you have to do them. You’re much less likely to wake up in the middle of the night remembering something that you didn’t do. It also helps you…

12Feb 2018 by Galen

Last Minute Tax Moves for 2017

Running a Business, Taxes

Did you know there are still some things you can do to reduce your 2017 taxes? You’ve missed most tax savings opportunities since they tend to have to happen within the calendar year. However, there are a couple that you can still do… and even an extra two available to you as a business owner! One really important note: I’m not a CPA and if you’re looking for specific tax advice you should talk to a CPA. I’ve sent folks to Ernest Jones before and he knows his Twitch… check him out. Additionally, you could check out our article on taxes here. Traditional IRA + HSA First, assuming your return shows under $72k Modified Adjusted Gross Income (MAGI) single ($119k married) you can get a tax deduction for contributing to…

05Feb 2018 by Galen

SWOT analysis

Galen's musings

SWOT analysis While getting my MBA I learned many things that really don’t matter to me today. For instance, I rarely my CFA level investment management class. However, one of the things that I do use is the SWOT analysis. While it’s safe to say that it can get a bit buzz-wordy, at its core it’s a useful tool. What is a SWOT analysis? SWOT is an acronym. Is stands for strengths, weaknesses, opportunities, and threats. The idea is to analyze those factors as they apply to you, your business, or even a specific opportunity. With strengths and weaknesses you focus on the internal and with opportunities and threats you focus on the internal. Strengths What are you good at? What advantages do you have? What’s unique and beneficial about…

Author: Galen