Freelancing for years, I’ve found it hard to maintain a buffer. Some months are packed, while others are dead silent.
Right now, I aim to save 20% from each invoice, but it’s challenging to let that money sit unused. What strategies do you use to navigate this feast or famine situation?
Used to struggle with this too. What changed everything was treating that 20% like a business expense, not savings.
I opened a separate account and called it my “operations fund.” Every invoice payment, 20% goes there first before I pay myself. Made it feel less like money I was hoarding and more like keeping the lights on.
Also started tracking my income patterns. Turns out my slow months weren’t random - they happened around the same times each year. Now I plan for them and sometimes save extra during the months I know are usually good.
One trick that helps with not touching the money - I calculate how many days that fund covers. Seeing “73 days covered” feels way better than just seeing a dollar amount sitting there.
Your 20% number is about right. I do 25% because I learned the hard way that slow months always last longer than you think they will. The key is making it automatic so you never have to decide whether to save or not. I set up my business account to transfer the money out every Friday. Takes the choice away from me completely. Track your patterns too. Most freelancers have busy seasons and dead zones. Once you figure out when your dead zones hit, you can save extra during the good months.
I save some each month and stick to it.
The hardest part is actually not touching that money when you see it sitting there. I learned this the hard way.
What works for me:
I also try to sign longer contracts when possible. Even a 3 month project gives more predictability than constant one-offs.
The feast or famine thing never fully goes away, but having that cushion makes the quiet periods way less stressful.
Save some each month and treat it like a regular expense. Works better that way.