Reply to DH is a new big law partner and I have no clue how to budget

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[quote=Anonymous][quote=Anonymous]OP, a lot will depend on the precise compensation structure - how much is deferred to the following year, when the following year is it paid out, and what is paid out (and when) the current year.

That said, here's what we do:

- I set aside, in a separate account, money for estimated taxes each month. 
- The first year is tough, because you're funding current tax expenses in real time.  We also prefunded some of next years tax bite, to make cashflow a little easier.
- Do not make any assumptions about how much the raise is, because it's likely less than you think.  For example, you're paying both sides of SS, and you may be paying a *lot* more for health insurance than you're used to.  
- I have had good luck with setting up multiple online accounts for different buckets.  One for estimated taxes, one for emergency fund, one for next year's insurance payments, one for vacation, etc.  At this point, we have probably 15 "separate" accounts.

[/quote]
Adding to this:  You'll need an accountant, if you didn't already have one, if the firm is a partnership, as opposed to a PA or something similar.  
I keep a sizeable "cashflow management fund" that I draw from as needed to smooth out lumpy expenses.  [/quote]

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