Managing irregular earnings.
WHAT MAKES IT DIFFICULT
Income arrives unevenly, while costs do not.
WHAT TO ESTABLISH
Your minimum monthly requirement.
WHAT TO BUILD FIRST
A buffer covering several months.
WHY FIRST
It converts a crisis into an inconvenience.
HOW TO BUILD IT
Treat it as a fixed cost from every payment.
WHAT TO SET ASIDE FROM EVERY PAYMENT
Tax Buffer contribution Business costs
WHAT REMAINS
What you can actually spend.
WHY THAT ORDER MATTERS
Spending first and saving what remains produces nothing saved.
WHAT TO DO ABOUT LARGE PAYMENTS
Treat them as covering several months, not as windfalls.
WHAT TO AVOID
Committing to fixed costs based on good months Assuming current clients continue
WHAT TO PLAN FOR
Gaps between engagements Late payment Illness
WHY ILLNESS SPECIFICALLY
Without employment, there is no sick pay.
WHAT TO ARRANGE
Health cover Some form of savings for interruption
WHAT TO TRACK
Income and costs, monthly.
WHY
Variable income conceals trends.
WHAT TO REVIEW
Whether your rate covers your actual requirements.
WHAT TO DO IF IT DOES NOT
Raise rates, or reduce costs.
WHAT TO AVOID
Working more hours to fix a rate problem.
