#1 Stick to the Basics
Keep in mind that while your monthly income may significantly fluctuate from one month to the next, many of your utility bills will not do so. You must then calculate the average amount of money spent on your basics including housing (i.e., rent or amortization), food and water, and utilities as well as on gas and incidental expenses. You should take a hard look at your basics because there are many ways to trim down your expenses, thus, allowing for higher monthly savings for your rainy day fund and for small investments.
Of course, sticking to your budget is a must.
#2 Think In Percentages
Since your monthly income fluctuates, you must stop thinking about a fixed amount of dollars that must be set aside as savings. You will likely save too little when your income is high and too much when your income is low.
Instead, set aside money for investments in terms of percentage of your present monthly income. Experts suggest setting aside 10% for your emergency savings fund regardless of the amount of money earned for the month and 10% for your retirement fund.
#3 Pay Your Taxes
Don’t fall into the trap of paying yourself first and the taxman second. You will find that the taxman cometh regardless of the income you earned for the month so much so that you may find yourself deep in debt to the government. Always set aside money for taxes even before setting aside money for your investments fund lest you find yourself paying for the former using the latter.
Now for the part about where to earn income but that’s another story.