I am not sure what industry your husband is in, but I know that in my own, the payments aren’t like clockwork for all clients. I usually send a pay within 30 days invoice at the end of the project, which is standard in my field. If I haven’t received a check within 40 days, I start following up on it with my main point of contact. That usually resolves it, but sometimes it takes awhile. The latest check I ever received was about three months late, though I do currently have one client who (unfortunately) is about beat that record.

You may already know, but just in case– your husband will probably owe taxes in January if he receives any payments in 2008. Quarterly self-employment taxes are due in April, June, September, and January. They can be big, so it’s worth preparing for them ahead of time.

I know that it’s hard to resist the urge to spend, but my own two cents is that you really, really need to build up your emergency fund before you buy anything special. One month or even one-plus month wouldn’t be enough of a cushion for me. What with accounting hiccoughs, project cancellations, and different billing cycles, I’ve gone as much as four or five months without receiving a check at all. And then receiving a big one… but without funds to draw upon during the no-check times, I wouldn’t have made it to the big check at the end. Maybe things are different in your husband’s field, but think about it? Decent cash reserves can mean the difference between thriving and failing when you’re self-employed.

Best wishes to you both, and congratulations! Despite the financial vagaries, I really love being self-employed, and I hope he does, too.

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