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Investment Strategies for Variable Freelance Income

Dollar-cost averaging does not work on variable income. Learn the percentage-based strategy that scales with whatever you earn each month.

By FlowFund TeamJune 28, 20263 min read

The Irregular Income Problem

Dollar-cost averaging requires a fixed amount every month. Feast-and-famine cycles make this impractical.

Percentage-Based Rule

Invest a fixed percentage of every payment received. When client payment arrives, transfer X% to investment account within 48 hours.

10% if still building emergency fund.
15% if emergency fund complete but debt remains.
20%+ if debt-free with full emergency fund.

$10,000 month = $2,000 invested. $3,000 month = $600. Both correct for that month.

Investment Waterfall Priority

  1. Emergency fund (6 months)
  2. High-interest debt (above 8%)
  3. Tax-advantaged retirement accounts
  4. Low-interest debt (4-8%)
  5. Taxable investment account

Asset Allocation

30-year-old freelancer: 70-80% global equity index funds, 15-20% bonds, 5-10% cash opportunity fund.

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