If your income fluctuates (you are a freelancer or own your own business), it’s a good idea to set up a separate business bank account (checking and savings). That’s a given. However, another thing you may want to do is set up TWO business bank savings accounts: One for regularly paying your monthly bills and the other as a safety cushion.
You might be better off opening an account at a different bank than the bank where you keep your checking account; this makes it harder to tap your money impulsively. You have to make a conscious decision to transfer money from one bank to another. It may not seem like much of an impediment, but it may be just effective enough to keep you from pulling money out when you think you need it.
Another tip: If bills are coming due that you don’t have income for – go out and hustle and make more money.
I know – easy for me to say. But you’d be surprised how motivated you become to earn more when you think you will come up short.
Summary
When you have variable income, set up a savings account at a separate bank and pay all your bills using a checking account.