Comments on: Some Ideas For Stabilizing Your Income If You’re a Freelancer or Self-Employed

By: Credit Girl

Credit Girl — Thu, 28 Jan 2010 17:53:22 +0000

Great post! These are all good tips and I especially follow #4! I always try to set aside a certain amount of money whether it’s a lot or a little simply to just have for my emergency fund. It is definitely hard to work around an income that fluctuates a lot which is why it is important for us to learn how to budget on a freelancing income. Here’s an article we wrote that also deals with this topic:http://www.gobankingrates.com/budgeting-for-freelancers/

By: MoneyEnergy

MoneyEnergy — Wed, 13 May 2009 06:24:04 +0000

@Steve, good point I forgot to mention: not only might the income be sporadic, but depending on what you do, you might also have sporadic expenses (not quite the same as unexpected expenses) so, yes, I’ve also done this – try to “average out” the expenses and treat them as if they were monthly.

By: Steve

Steve — Wed, 13 May 2009 01:59:08 +0000

I work part time as a contractor, so this information comes in handy. I’ve also read that it’s helpful to average out your expenses for your budget categories for the whole year. That way, you can allot the specific amount you need to those categories, and put the surplus into an interest bearing account, such as ING, that has decent interest and is easily liquidated if needed.

By: John

John — Tue, 12 May 2009 13:40:29 +0000

Thanks for your post, it’s really completed and very informative. I think in this global economy crisis like this, finance management almost be attention for all people, not only for entrepreneur but also the employees must have finance preparation

By: MoneyEnergy

MoneyEnergy — Tue, 12 May 2009 07:09:25 +0000

@MLR – amazing if you were already renting rooms out as a student, you probably raked in the dough!

@MillionDollarJourney – common sense points as always, thanks!

By: MLR

MLR — Tue, 12 May 2009 04:09:46 +0000

As a student I always did #1 and #6.

I must say, though, that your point about “Nevertheless, it might work for disciplined people” couldn’t be more true. I watched time and time again as my peers failed at that method.

To each his own. Figure out something that works for YOU. :)

By: MillionDollarJourney

MillionDollarJourney — Mon, 11 May 2009 22:45:21 +0000

Thanks for the mention!

I think the biggest thing for entrepreneurs, as you mentioned, is to have an ample cash reserve during times when cash flow is tight. As well, when cash flow is high, be sure to sock some away.

By: MoneyEnergy

MoneyEnergy — Mon, 11 May 2009 20:53:42 +0000

Thanks arohan. When I think of CD and GIC ladders, though, isn’t it usually in order to reinvest that money in another CD/GIC (Guaranteed Investment Certificate – Canada)? I suppose if it were large enough of an amount, it might be worth using the interest as income. Ultimately it is another way to smooth out the income on a more consistent basis.

By: Arohan

Arohan — Mon, 11 May 2009 20:13:23 +0000

Good ideas. How about setting up a CD ladder or a bond ladder