Anyone who earns a success fee rather than renting their time by the hour is familiar with the challenges of irregular income.
It’s feast or famine at times.
Here are six ways to manage unpredictability to ensure the financial stability of your business and family:
Budgeting – Sounds obvious, but this helps you understand when/where to make cuts if needed.
Emergency Fund – Three to six months of savings when that deal falls apart and the next deal isn’t going to close for another 60-90 days.
Track Expenses – Keep separate sets of books for your household, properties, and business with Quickbooks. It’s an extra $85/Month for each set of books, but it helps ensure you stay within budget.
Debt Management – Interest eats cash flow. Pay off the balance each month based on the budget and rack up travel or cash points with your AMEX or travel-branded credit card.
Expense Prioritization – When you have three kids, three dogs, and an elderly parent to care for, someone is always tugging at your wallet. Essentials get paid first, including your paycheck. Send the rest for savings, investing, and debt repayment.
Invest in Long-Term Assets – Recurring revenue from small businesses, and other passive income like rental properties help stabilize your cash flows.
How else do you manage cash flow when your income is irregular?
I write seven days a week to help business owners and real estate investors:
✅ Accelerate value,
✅ Become better leaders,
If this was helpful:
👊 Please share this post with your network
👊 Follow me for more on strategic planning and finance
