Reserve good-month income for lean months
Whena better-income month ends
After a better-income month, cover essentials, required payments and any tax set-aside, then put an affordable surplus into a lean-month reserve. At each month’s start, use it only to fill a basic-cost shortfall.
- Steps
- Estimate basic monthly costs from recent bills; use a conservative income expectation.
- After two cycles, adjust the reserve target to the gaps you actually face.
Start tiny
Name next month’s basic costs.
SafetyNo reserve means spending from actual receipts, not borrowing to imitate a steady salary. Get tax advice for self-employed income.
Office of the Superintendent of Bankruptcy. Making your budget. Read the source ↗ Financial Consumer Agency of Canada. Making a budget. Read the source ↗ Canada. Editorial reminder adapted from documented guidance; the exact cue and sequence are not a tested intervention.
Mastery: Practices you develop over weeks through skill, planning and trade-offs.
