How To Budget An Unpredictable Income
It goes without saying that budgeting is one of the most important things anyone can do for a healthy financial life. Having a budget is the easiest and most effective way to manage your cash flow, as it’s a guideline of how much money you have and how much it costs to run your life and cover necessities (rent, food, etc.)
And while it’s incredibly crucial, it’s hard to create a budget when you have a variable income. Whether you’re self-employed, have an hourly job, or your pay is dependent on commission — budgeting on a fluctuating income requires more planning than when you have a stable job wherein in you receive a regular paycheck weekly, biweekly, or monthly. How much money you make depends on a host of variables: how many clients you have, the projects you’ve worked on, or how many hours you’ve clocked, so you always have to be prepared for when you’re either rolling in it or all of the times your bank account will be dry. That said, it’s more than possible to budget in this scenario.
In the latest 3-Minute Guide, brought to you by Skillshare, Erin shares five ways to budget with an unpredictable income. While it can be a bit unnerving not knowing how much you’re going to bring in from month to month, these tips will help you master your finances even when it’s unpredictable.
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