Episode 3 of 6
The Income Smoothing System
Fran's income swings from $4k to $12k monthly. She builds a system: a business checking account, a tax savings account, a personal draw, and a profit buffer. The model shows how to turn variable income into predictable cash flow.
Key Insight
By drawing a fixed $4,500/month personal salary and sweeping the surplus into a 3-month business reserve, Fran can weather any $4k month without touching her emergency fund. The reserve reaches its $13,500 target in 4 months of average billing.
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