Tips to Budget on a Variable Income

First things first, what is 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.

The first trick is to know how much you need to survive monthly and then create a basic budget. This budget must include food, shelter, transportation, and clothing needs. After the basics, list your other expenses in order of most important to least important, make sure to include your savings!!! Finally, after covering necessities and prioritizing other expenses; add in the extras like coffees and entertainment. Create a miscellaneous category for the unexpected.

All the while, make sure to use credit wisely. Avoid the temptation of using credit to make ends meet. Charge only 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 and all spending needs to fit within your basic budget. Account for every dollar.

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, such as theOnward Benefit account, for any extra money over and above your basic budget to be available when there is less than the minimum income.

The best way to live on a variable income is to really know where your money is going.