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Regular or Irregular Income, Everyone Can Do a Budget
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Tags: Irregular income self employment commissions budget

I often hear about a problem that comes up a lot for people who work jobs where their income is irregular. These people might be self-employed or maybe they do not know how much they will make from month to month.† These people think they canít do a budget.† This is not the case.† In fact, the people with an irregular income or are self-employed need to do a budget MORE than the person that makes a consistent income every month.† The part that people struggle with in starting to do a budget is that the first few months are going to be a guess.†† Maybe you are one of these people with an irregular income.† If that is the case, the first budget you are going to guess and donít expect it to be perfect.† Perfecting the budget will come with time.† You need to allow about 3 months to work everything out and understand what is going on.† When you start, you will want to do a budget with an amount of income you know you can count on.† As you get paid throughout the month, anything extra for that month you can go back later and assign to a budget category for the month.

What is easiest to do is to write down everything that you spend money on each month. But you want to make sure that you list everything from most important down to least important. Obviously you will want food at the top of the list.† If you have enough to cover food that month, then you move on to the second most important thing which is mortgage or rent.† If you can pay that and still have some left, you would pay your lights and gas.† Next is transportation.† You would just continue to keep moving down the list until you have used up all your money for that month.

If you are trying to figure out how to do your budget a month at a time, try breaking it down at first by every 2 weeks or however often you are paid.† When you have done your budget for a while and understand how a budget works for you, try to move away from breaking it down and move towards a monthly budget.† Youíll be glad that you have your plan for the month.

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"Thank you, Cindy. I am always happy to help with tips like these...."
In: Budgeting 101: Living On Less Than You Make
by: Brad Kinder
"Brad, These are great tips! Thanks for sharing."
In: Budgeting 101: Living On Less Than You Make
by: Cindy Allen-Stuckey

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