Lesson 1
Defining Your Financial Baseline
Analyse your past earnings to determine a safe, sustainable monthly income figure for your budget.
Calculate Your Average
List your income from the last 12 months. Identify the lowest earning month. That figure is your baseline for planning. Do not build your budget on the highs.
Assess Essentials
List your non-negotiable costs: rent, utilities, food, transport, and insurance. If your baseline income is lower than your essentials, you must cut costs or find a bridge job.
The Buffer Concept
Create a 'Holding Account' where all income arrives. Pay yourself a fixed salary into your personal account every month. If you earn extra, it stays in the Holding Account. If you earn less, you draw from the surplus. This system decouples your lifestyle from the chaotic reality of variable payments. You effectively become your own employer, ensuring you have enough to cover fixed costs even when the market is slow.