For some of us, a stable income isn’t part of the financial picture. Whether you work on an hourly basis, and aren’t assigned the same number of hours each month, or whether you are self-employed and never entirely sure about where your next paycheck will come from, it’s vital to know how to budget when you have a variable income.
Add Up Your Monthly Expenses
The first thing you need to know is how much you spend each month. Break down your expenses according to whether they are recurring, or one-time. Don’t forget to include your spending on every day items, or splurges. You want to have a general idea of how much you spend each month. This is the foundation of your budget.
Prioritize your expenses as well. You want to make sure that the most important expenditures you have are covered first. Bills, groceries, and debt payments are among the most important spending categories. When you prioritize your expenses, you have a solid idea of which things can be dropped from the list if you have a lean month. Know ahead of time what you can cut back on if necessary. ... Read more from Ready for Zero