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LearnFAQSelf-Employed & Small Business

How do I pay myself consistently when my income is lumpy?

Answer

Pay yourself a fixed, predictable amount on a set schedule rather than spending whatever happens to be in the account. First, figure out a sustainable owner's pay by averaging your net income over the past 6–12 months and setting your draw at a level the business can cover even in slower months. Hold incoming revenue in your business account, take that steady draw — say twice a month, like a real paycheck — and let surplus from strong months accumulate as a buffer for the weak ones. This evens out your personal cash flow and removes the emotional whiplash of variable income. Keep tax and profit set-asides separate so your "salary" is what's truly left to live on. Revisit the figure quarterly and raise your pay only once the buffer proves the higher amount is sustainable. Consistency is what makes budgeting possible. See wealthserene.com/for/self-employed.

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