I'd recommend first creating a monthly budget to manage your irregular income. Estimate your average monthly income and then allocate funds for necessities such as rent, utilities, and art supplies. Next, create an emergency fund with 3-6 months' worth of living expenses to cover any unexpected situations. Once you have your financial foundation in place, start contributing to a retirement account, such as an IRA or a Solo 401(k) suited for self-employed individuals. This will allow you to save for retirement and also benefit from potential tax advantages.
As a freelance artist, I have an irregular income and short-term expenses like rent, utilities, and art supplies. How can I start saving for retirement, while also managing these varying expenses each month?
Imagine you are a financial advisor. Offer guidance to a freelance artist looking to save for retirement while balancing short-term expenses.