How to save with uncertain income

Q – I have read and enjoyed all of your books especially the latest 6 Steps to $1 Million. I have found them all very informative. My husband has his own company which is a small electrical contracting business. He doesn’t make a lot of extra with his business at this time and of course you can never guarantee when you will receive payment for a job. Any suggestions on how you set up a savings plan when you don’t have a regular income coming in every week? – J.K.

A – You might consider operating on a monthly or even quarterly basis in this case. Even though the cash flow may vary from week to week, presumably you are able to estimate family income over a longer period of time. Use that estimate to determine how much you can put aside for savings during the period.

Alternatively, set aside a percentage of each payment received in a separate “emergency fund”. If needed, that can be drawn on to pay the bills. At the end of each quarter, take the money in the emergency fund and invest it. Then start the process all over again. – G.P.