Riding the Income Roller Coaster
- Wednesday, September 20, 2006
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
"Debt-Proof Living" was founded in 1992 by Mary Hunt. What began as a newsletter to encourage and empower people to break free from the bondage of consumer debt has grown into a huge community of ordinary people who have achieved remarkable success in their quest to effectively manage their money and stay out of debt. Today, "Debt-Proof Living" is read by close to 100,000 cheapskates. Click here to subscribe.
Recently on Finances
Have something to say about this article? Leave your comment via Facebook below!
Listen to Your Favorite Pastors
Add Crosswalk.com content to your siteBrowse available content