Do you have irregular income? A few years ago, my husband owned his own business and our income was very much irregular. It took me forever to figure out how to budget for this ever-changing stream of money.
Once I figured out it was all about my approach and how I applied the budgeting formula, I was able to quickly figure out the best way to budget for irregular income.
This video is short (under five minutes) and will help to explain how to apply the budget formula to irregular income. (If you have trouble viewing the video below, you can view on YouTube here.)
If you are looking for more tools to help you with irregular income budgeting, I suggest reviewing my How to Use Dave’s Allocated Spending Plan post. Using his worksheet is amazing for those that have irregular income because it allows you to see your expenses from week to week.
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Great tips— budgeting effectively when you don’t have a regular/recurring income amount is one of those things that’s common sense but not so common! I’m personally in the irregular income boat, but the hubby’s not, so while it isn’t always easy creating our budget, at least it’s not so much a feast or famine issue with us.
This is great & just what I needed. Thanks a million times over!
Thank you Melissa! 🙂
My husband just started his own business, so this is extremely helpful! I was wondering how we were going to stick to a budget in months when he won’t be making a whole lot of money. Have you taught classes before? You’re a really good teacher 🙂
Thank you Charlee! I’ve never taught before but when I was little I always wanted to be a teacher. 🙂
This is brilliant, Jessi! We’re in this situation with both of our jobs. We make it work, but I’ve never heard it explained this way before. Going to apply it for sure!
Thank you Femme! 🙂
Great article and video. I loved how you explained it. Thank you for linking up at Frugal Friday. 🙂
This is really good stuff–my husband is in sales and gets paid off commission, so our income is always unpredictable. The safest way to account for that is to always have money in savings and have, as the video shows, a really good handle on what the monthly expenses actually are. We always have a sheet showing exactly what is going out to bills, rent, etc. He can’t work in the winter, so we have begun putting aside what we know we need for living expenses + our base $1,000 in extra savings. Working up to the 3-5 month living expenses savings account now that we have our debt almost entirely paid off. Overall, just be careful.
Yes – money in savings is definitely the safest way to buffer yourself from any serious irregularities! 🙂 You ROCK Michaela!