In my practice, where we charge fixed fees for everything, December can be difficult. Revenues are affected by the holidays. My revenue anxiety often disrupts my holiday sleep. I wake up dreaming of bankruptcy judges and debtor’s prison.

Between prospective clients putting off the divorce until January, the days we’re closed, and the number of people on vacation, things can get very slow. It’s challenging.

Some practices don’t feel the holiday impact until January when they send out December bills and transfer income from the trust account. For most of us, it’s not really an “if” we’re going to feel the impact of the holidays, it’s a question of “when” we’re going to feel it. Different billing approaches create the cash flow crunch at different times.

What can you do about it now with five days until Christmas?

Nothing.

This year you’re going to have to cope, like most years.

However, there is hope.

You can much more easily manage next year—if you start preparing now.

Here’s my plan:

1. Wait until February and then take note of your expenses for the slow month you expect to come (for us, it’s December; for you, it might be January). Let’s say you’ll have expenses of $200,000 during that month.

2. Go back and look at historical data and determine the worst month you’ve ever had (let’s say it’s $100,000 in revenue for that awful month).

3. Now subtract the worst month from the expenses you calculated in step 1 ($200,000 – $100,000 = $100,000).

4. Start setting aside one-tenth of the amount calculated above ($10,000 per month). Put it in a separate account that, ideally, doesn’t show up when you check online banking balances. Make it an auto debit and have it come out weekly ($2,500 per week in our example).

5. That’s it. When you get to the slow month, you’ll have what you need. If the slow month turns out better than expected, then you’ve got a bonus. If not, you’re prepared. Either way, you’ll sleep better all year long.

More often than not, I don’t follow my own advice on money. I usually wing it and find myself wide awake at 4 AM worrying about things. This year is going to be different. I’m taking my advice and setting up my “secret” bank account. I’ll be sleeping like a baby. Will you?