As a Business Owner and Creative Professional, I Used to Struggle With Irregular Income Until I Did This…

Do you find it difficult to save money or plan for your year because of irregular income? Maybe you struggle to build emergency funds, pay off your debt or pay your taxes on time?

If you’d like to learn how to stabilize irregular income, stick with me as I break it down into 3 steps…

And if you’d like to watch the video on today’s post, check it out HERE

Hi, my name is Lucas and for the last 3 decades I’ve been getting paid as a photographer, real estate investor, dj, and small business owner. Sometimes the money comes in all at once and other times I go 3-6 months without getting paid.

I LOVE the freedom and flexibility of my lifestyle but not knowing when I’m going to get paid has always stressed me out. The good news is, I’ve learned a lot from my time in the trenches and as it turns out, stabilizing irregular income can be quite simple…

As we get started i’d like to point out that I’m not a financial expert & this is not financial advice. I share what works for me & my clients so take what you will and leave the rest. Remember, your financial choices are always your responsibility - I accept no liability.

How do I stabilize my irregular income and make it last?

From real estate pros to creatives, business owners to commissioned sales, everyone of my clients wants to know how to stabilize their irregular income and when they first come to me, they’ve all been trying the same thing… They work their butts off to make more money but because they’re so busy hustling, they overlook a much simpler solution…

The easiest way to stabilize irregular income is to build a surplus in your accounts and insulate yourself from the lean times.

Think of it like this.. In preparation for the winter, a squirrel will stockpile nuts.. Each time she finds some, she prepares herself for the lean times. If you’d like to create more financial stability, be more like the squirrel.. So let’s get to it..

Step 1:

The first thing is to figure out which areas of your life need money on a regular basis. A squirrel doesn’t put all of her nuts into one spot, she spreads them around and so can you…

For example: I have a business, I set aside money for taxes, I like to have nice things and do cool shit and for most of my life I ignored my savings so paying myself first is a huge priority. I have four main areas that require money.

Now it’s your turn.. What are the main areas of your life that require money on a regular basis?

• Taxes?

• Living expenses?

• Investments?

• Travel funds?

• Maybe some debt you’d like to get rid of?

Write down everything that comes to mind. You may have 120 things that you spend money on, but the goal here is to keep your finances simple so, streamline all of those things by grouping them into 3-4 main categories.

For instance, I put groceries, meals, entertainment, insurances, the mortgage, utilities and all of my living expenses into one category and named it living expenses. I lumped my taxes and debts into one category and named it, the dough I owe and so on.

If you’ve never done this, it can be quite helpful to break down your finances into a few main categories and it helps to keep things organized.

Step 2:

Now that you have identified the main areas, you can start building your stockpiles. When the money comes in, spread it out so that each area receives money.

For example: Every time I get paid, I send money to my business account (business checking), some to my living expenses (personal checking account), some to my savings (personal savings account) and some goes towards my taxes (business savings account).

Because I do this every time I get paid, I grow a surplus of cash in all four areas of my life simultaneously. I rarely touch my savings, so it grows and grows. I spend money from my other accounts so those balances fluctuate but over time, each of them grows.

Why is stabilizing your income so important?

Have you ever had a client ask you for discounts right away? Early in my career I had a few and because my accounts were empty, I’d take the gigs. Each one of those clients were unpleasant to work with - they asked for more discounts, complained about everything AND demanded more of my time and energy.

I compromised myself because I didn’t know when I was going to get paid next - maybe you can relate… Now, Imagine that you have a 10k padding in your business account right now. On top of that, you also have a $10k cushion for your living expenses, your taxes and your savings…

If you had a $40k surplus, would you say yes to a person who doesn’t respect you or your services? If you were sick, would you force yourself to take a client or would you relax knowing that you’re covered?

When we learn how to stabilize our income and insulate ourselves from the lean times, we get to choose who you share your time and energy with and that’s worth it’s weight in gold

At this point in the lesson, a lot of my clients say the same thing… “I don’t have extra money to build a stockpile because it all gets spent on bills”. Thing is, it doesn’t have to stay that way. Most people have more money available to them then they realize, they just don’t know how to capture all of their funds that are being wasted.

If you’re curious to see how much of your own money you could be keeping each year,  click here to set up a free 1 on 1 call with me. I’ll walk you through your income and expenses and show you how much money you’ve been giving away and how to keep it.

Step 3:

Now, let’s look at the third step to stabilizing irregular income… Luckily, it’s very simple..

Every single time you receive money, send a percentage to each of your stockpiles.

Make sure your living expenses have plenty, cover your taxes, add to your savings and any other accounts that are important to you.

Consistency is Key!

If you get paid often, your accounts will grow quickly. If the money is slow to come in, be patient and stick to the plan. And if the money is really tight, send just 1%, as a symbolic gesture, to each of the areas that are less crucial.

For example, if your priority is to keep the lights on, send the bulk of your check towards your living expenses and send whatever you can afford to the other main areas. Once you are back on your feet, you can start spreading the funds out more evenly.

Stabilize your irregular income and set yourself FREE!

Whether it’s an off season, a downturn in the economy or you simply want to take some time off - you do not have to be at the mercy of irregular income. Rather than chasing after more jobs, focus on what you actually have control over and start building stockpiles for your business & personal life.

As always, than you for your time and energy and I’ll see you in the next one.

-Lucas Z.