On February 1 you write yourself a $3,000 paycheck. On March 1 you write yourself a $3,000 paycheck. On April 1 you deposit the $5,600 and write yourself a $3,000 paycheck and so on each month.

If your self-employment position is sufficient to support you and your family, you should not have to worry. The income flowing into the holding account should exceed the paychecks. If not, perhaps it's time to call this a hobby not a viable business that can afford to pay an employee.

As the holding account becomes healthy, there will be additional funds to carry you through lean times. When things are going well and there are sufficient reserves, you might even consider negotiating a raise for yourself, but remember to think this through. Weigh the pros and cons.

Consider the position of both the prudent employer and the needy employee.

Your success self-employment success lies in your willingness to be a strict employer and at the same time a grateful and humble employee.

Originally posted Sept. 2006

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