I have been working in startups for a while and I feel like I have learned so much since I started in technology, but in all the time I have served at startups, I have yet to save up a runway or secure a safety net.<p>After leaving my last startup, I secured a great consulting contract that should offer plenty of cash on hand, and honestly my cash position is better than it's been in 6 years, so, right now so I am sure I made the right choice.<p>I am trying to save as much money as possible to build up a runway for my next venture. I'd like to save 9 months worth of expenses or about $60k+.<p>What are the best tactics and strategies that other Self Employed Software Contractors use to save cash, especially on their taxes?<p>Some friends have advised setting up a company, and in the past I knew someone who set up an S or C corp and paid a wage, while the remaining profit was sent out as a dividend. But what do others do?<p>I know a 3rd option would be to use what ever funds I earn and try to leverage that, so if you have any ideas there that might be an interesting option as well.<p>Right now on prosper.com i'm able to get a 15% average return, and in the stock market I have been doing 20% year over year in my IRA, but these are not good tools to get ready for starting a company.<p>One option I have thought about would be to 'start' the company now, and then push all of the cash into it, and then later just work on what ever project that company would later produce.<p>Thoughts?