Incomes Varies? Tips to Budget on a Variable Income

Variable income is money that comes in different amounts or at different times. Usually it is earned with part time work, contract jobs, seasonal jobs or tipped positions.

It can be difficult to budget when your income is irregular and your expenses are fixed but it isn’t impossible.

First step is to know how much you need to survive monthly. Create a basic budget that includes: food, shelter, utilities, transportation, and clothing. After the basics, list your other expenses in order of most important to least important, make sure to include your savings! The goal is to prioritize necessities, cover your other listed expenses, and then add in the extras like coffees and entertainment. It is always a great idea to create a miscellaneous category for the unexpected.

Another great tip is to use credit wisely, but most importantly avoid the temptation of using credit to make ends meet. Only charge what you can afford to pay in full at the end of each month.

Track your credit and debit card spending so that you know how much you have charged or deducted from your accounts. Any spending needs to fit within your basic budget. Account for every dollar and you will avoid falling into a credit card trap.

Resist overspending in the good months. Schedule expenses such as non-emergency dental or medical care, and holiday or birthday gifts when there is extra income.

Find a place for your extra cash. Open a savings account for any extra money over and above your basic budget to be available in times of crisis or in case your income falls for one reason or another.

Ultimately, the best way to live on a variable income is to really know where your money is going! For more tips to manage an income click here!

Happy Saving!!!