As an employee, you look at every month’s pay to consider how much you can spend. And that’s if you are calculated enough to consider your income before you spend it all. As a self-employed professional or small business owner, you have to take the entire year into account.
The reason for that is that when you work for someone else the variables of your job don’t affect your pay (unless you get a commission). But as a self-employed professional everything you do affects your pay.
Since that is the case you can’t take one month’s pay as the default monthly income. You will always have two or three bad months a year, and two or three good months. Your income could look something like this. $2,500 then $4,000, then $1,000. This is why the IRS takes the whole year into account before they tax you, and you should do the same.
Another tip I can offer you is to track your variables. Track the actions you take to create the result you got. How many calls did you make? How many of them ended up as sales? Tracking this information will allow you to doubles and sometimes 10X your profits. Once you quantify the process you can optimize it.