[nomadiam]

For the last few years I've worked online and make a decent income, usually around 3 or 4 k a month. This has allowed for a pretty cool lifestyle where i've been able to travel quite a bit and have set up shop in various places like Nicaragua, The DR, Costa Rica and more. Currently in Panama.

I've had this pattern for the last few years though that I'm just now really starting to address which is that although I make decent money when all is said and done, the money I make is very sporadic and comes inconsistently, just due to that nature of my website and what I sell. One month I might make 5k and then the next 2k and the next 3k and so on.

I've been running into this pattern where I'll do really well and then not really think or worry about money, travel around, live pretty carefree and then gradually my account will start to dwindle and I'll go into panic mode, work for a couple months, watch my account go back up and then start the pattern all over again.

I'm working on really addressing and resolving this issue now. Of course the obvious solution is to spend less and/or make more, but is there anyone else with a similar experience who works online? My plan is to get out of Panama in the near future and go back to supplementing my income playing guitar and teaching music on the side, which I was doing in the DR. Panama is just stretching me to thin.

How do fellow online marketers deal with fluctuating incomes? Seems like this must be an issue other internet marketers experience.

[PastTense]

You just need to maintain a substantial cash buffer.

[nomadiam]

(11-01-2014 06:09 PM)PastTense Wrote:  

You just need to maintain a substantial cash buffer.

I used to have one of those.

[The_CEO]

Build your savings to a level that you could live off for for 6 to 12 mos.

Create a budget and cap it (try to live off of 2k a month or whatever. save the rest).

[RawGod]

Settle down in your favorite lower-cost place for 12 months, cap your spending at $1500/month, and focus on your business. You can save during that year as well as grow your business.

[nomadiam]

(11-01-2014 06:24 PM)RawGod Wrote:  

Settle down in your favorite lower-cost place for 12 months, cap your spending at $1500/month, and focus on your business. You can save during that year as well as grow your business.

That's pretty much my plan. Kind of sucks because my current girl lives and works in Panama but I'm just finding this city and the cost of living too much at the moment.

[nomadiam]

The answer seems so simple, yet for some reason hard to do. I don't think I've ever really had a budget. It's time to change that. Thanks for the advice!

[Glider]

You could always setup in Chiang Mai for a year and spend $800 a month to build up the buffer.

What do you do online?

[w00t]

always live below your means and put some money away every month

if I was making 4 to 5k a month I would probably bank at least 75% of that money

in 2-3 years youd have 100k stacked up and could invest in real estate

I seriuosly dont understand how ppl blow so much money every month

[The_CEO]

(11-02-2014 06:35 AM)w00t Wrote:  

always live below your means and put some money away every month

if I was making 4 to 5k a month I would probably bank at least 75% of that money

in 2-3 years youd have 100k stacked up and could invest in real estate

I seriuosly dont understand how ppl blow so much money every month

You make a good point but can you really live off of 1k a month?

[Fortitude]

(11-01-2014 06:04 PM)nomadiam Wrote:  

I've been running into this pattern where I'll do really well and then not really think or worry about money, travel around, live pretty carefree

Just don't do this. Keep your expenses relatively low. That would mean you build up your buffer in the good times, get by just fine in the mediocre times and have your saved up cash to help out in really dire times.

Only up your expenses when you consistently have been living under your standards for quite a while. It's tempting to start throwing money around when it's going well. But you have to think long-term. Always living comfortable and stress free is worth far more then whatever extra fun you get in those good months.

[poledaddy]

What line of business are you in? Affiliate marketing? Freelance programming? Good advice here on reducing expenses and keeping to a budget, but I'd also be thinking long term about how you could increase earnings. This would let you could live more comfortably without having to pinch pennies, and build up cash reserves faster.

[nomadiam]

(11-01-2014 08:08 PM)Glider Wrote:  

You could always setup in Chiang Mai for a year and spend $800 a month to build up the buffer.

What do you do online?

I sell music industry related courses, consulting, etc...

[nomadiam]

(11-02-2014 12:12 PM)Fortitude Wrote:  

(11-01-2014 06:04 PM)nomadiam Wrote:  

I've been running into this pattern where I'll do really well and then not really think or worry about money, travel around, live pretty carefree

Just don't do this. Keep your expenses relatively low. That would mean you build up your buffer in the good times, get by just fine in the mediocre times and have your saved up cash to help out in really dire times.

Only up your expenses when you consistently have been living under your standards for quite a while. It's tempting to start throwing money around when it's going well. But you have to think long-term. Always living comfortable and stress free is worth far more then whatever extra fun you get in those good months.

absolutely, it's a lesson i've learned the hard way.

[nomadiam]

(11-01-2014 08:08 PM)Glider Wrote:  

You could always setup in Chiang Mai for a year and spend $800 a month to build up the buffer.

What do you do online?

Is it really that cheap? I sell music industry related courses, ebooks, consulting, etc...

[nomadiam]

(11-02-2014 06:35 AM)w00t Wrote:  

always live below your means and put some money away every month

if I was making 4 to 5k a month I would probably bank at least 75% of that money

in 2-3 years youd have 100k stacked up and could invest in real estate

I seriuosly dont understand how ppl blow so much money every month

I'm working on changing this. We all have strengths and weaknesses. I have struggled with being disciplined about money, not quite sure why, but I am addressing it and making steps to change the pattern.

[nomadiam]

(11-02-2014 01:32 PM)poledaddy Wrote:  

What line of business are you in? Affiliate marketing? Freelance programming? Good advice here on reducing expenses and keeping to a budget, but I'd also be thinking long term about how you could increase earnings. This would let you could live more comfortably without having to pinch pennies, and build up cash reserves faster.

I have a music business education website and sell courses, ebooks, consulting etc...

[Fortitude]

(11-02-2014 02:03 PM)nomadiam Wrote:  

Is it really that cheap? I sell music industry related courses, ebooks, consulting, etc...

From what i understand it's quite doable for that amount. But ofcourse you will be living in a small apartment. And no daily massages, at least not the kind we pay for.

[Kdog]

No, $800 in Chiang Mai is not that doable. You will live in a substandard existence. $1200 would be a better number. That $400 really does make a world of difference.

[Brodiaga]

(11-02-2014 09:07 PM)Kdog Wrote:  

No, $800 in Chiang Mai is not that doable. You will live in a substandard existence. $1200 would be a better number. That $400 really does make a world of difference.

Could you elaborate on that? What does the additional $400 include?

[Kdog]

$800 would be your rent and food for the month and very minimal entertainment. That extra $400 would be the difference in lifestyle. Seeing movies, going on dates, going out, a weekend trip, more pricier meals (you don't want to 100% live off cheap Thai street food).