People are always talking about how to budget on a fixed income. The truth is a fixed income is easier to budget because you know what is coming when. For families on an irregular income, budgeting can be even more difficult. Not knowing what you will have one month to the next means you have to get creative to budget an irregular income.
Don’t try to skip budgeting because of it being more difficult. The longer you go without budgeting the harder it will be to get things back into order.
Think ahead when budgeting with an irregular income. Make a list of everything that needs to be paid and list them in order of priority. This will give you a place to work off of when money comes in so the important stuff gets paid.
- Understand true priorities like housing, food, and transport and put those expenses first at all times. Even when another bill may be looming over your head.
- Use your list of expenses to pick out the absolutely must pay the bare minimum. This is the amount of money you have to earn and if your pay will not cover this you will need to pick up the gaps with something on the side. Look at what easy side hustles you can take up in order to make some extra money IT is better to know from the start that you will not have everything you need and to start working towards it before your check comes and you realise it is not enough.
- Pay yourself first. When your first income arrives for the month put the money you will need for the entire month to the side if you have received enough to cover it all. If not toss the entire first check into that account then enough of the next to balance out that account. Once your bare bones are met toss the rest into a savings account.
- A loan from iloans can bridge you the gap in times of need but this should be a last resort and not used for luxuries that you don’t really need.
- When you have a good month and money is left over use it to build an emergency savings and a bit of a buffer to help you have padding to fall back on in tough months. This is vital to thriving on an irregular income if you do not have the ability to make extra money elsewhere.
Budgeting on an irregular income is challenging but with good planning it can be achieved.