As a self-employed individual you should try to figure out how much money you need to maintain their life style. Do a cash flow. Where does your money go each month? What would be the bare bones approach if you had to? Are you using your credit card to supplement those no-income periods? Okay to do that but pay it off entirely when your income increases.

And then work on putting together your emergency fund. During the good times, start saving aggressively so that you have at least 6 months worth of living expenses set aside for the lean times. For those lean times are going to come.

You want to keep this money separate from your checking account and definitely make it hard to get to it so you are not tempted to use it for a vacation or Christmas. Use a money market account, a 3-month CD or even EE bonds.