1. For a self-employed person with an irregular income, managing expenses can be challenging with chances of ending up spending all earnings.
2. For remedying this, s/he can conservatively project likely annual income, earmark a monthly “salary” and regularly credit this salary to another bank account.
3. Out of this monthly income, s/he should estimate expenses, prioritizing them in order of importance, by meeting all mandatory and essential living expenses, and moderating lifestyle expenses.
4. S/he must provide for health insurance, life insurance and taxes as well, being essential expenses, by creating an emergency fund as soon as possible, and if forced to draw from it, s/he should replenish it immediately whenever s/he has excess income.
5. Having budgeted income and expenses, s/he must now be disciplined enough to move any excess revenue earned to investments instead of increasing expenses, by postponing a “raise” for a couple of years even if s/he earns higher revenue.