How to Build a Buffer Account for Irregular Income (Especially for Freelancers)
If your income feels like a rollercoaster: highs, lows, and unexpected dips, one simple tool can help smooth the ride: a buffer account.
Think of a buffer as your personal shock absorber. It’s not an emergency fund (that’s for true surprises). A buffer is just a way to even out your income so you can pay yourself consistently, no matter what’s happening in your business.
How to set it up
Open a separate savings or checking account. It probably makes sense to keep it at the same bank you use for your business banking. Label it “Buffer” or “Salary”.
Each time you get paid, send a percentage into the buffer. 20–30% is a good starting point but if that feels like it is too much, start smaller.
Decide on your “salary”. That’s the amount you’ll transfer monthly into your personal account.
Stick to it. Even if you make more, don’t give yourself a raise right away. Let the buffer grow.
Example
In June you make $10,000. You put $3,000 into the buffer.
You pay yourself $5,000 that month.
In July, you only make $2,000. But thanks to the buffer, assuming enough surplus accumulated there, you would still be able to pay yourself $5,000.
Why it works
You reduce stress.
You start thinking like a business owner.
You gain predictability, even when projects ebb and flow.
This small system shift can completely change how money feels!
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