To determine if you can save money for an emergency savings account with a self-employment income of $20,000, you'll need to consider your tax obligations, expenses, and personal financial situation. Here are some steps you can follow: 1. Calculate your self-employment tax: As a self-employed individual, you're responsible for paying Social Security and Medicare taxes, known as self-employment tax. For 2022, the self-employment tax rate is 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings. You can deduct half of your self-employment tax when calculating your adjusted gross income. 2. Estimate your income tax: Based on your taxable income, determine your estimated income tax liability. Don't forget to consider any deductions (e.g., business expenses, qualified business income deduction) and tax credits you might be eligible for. 3. Review your expenses: Assess your living and business expenses to understand how much money you need to cover your ongoing costs. This includes rent or mortgage, utilities, food, insurance, transportation, and any other necessary expenses. 4. Calculate your discretionary income: Subtract your estimated tax liability and expenses from your self-employment income of $20,000. What's remaining is your discretionary income. 5. Set a savings goal: Based on your discretionary income, decide how much money you want to save each month for your emergency savings account. A common guideline is to aim for three to six months' worth of living expenses in an emergency fund. Once you determine how much money you can save monthly, you can start building your emergency savings account. Keep in mind that your self-employment income may not be consistent, so you may need to adjust your savings plan accordingly throughout the year.