Not everyone is blessed with a stable income. Some experience irregular income because of their sporadic clients or because of the industry where they belong. This irregularity leads to cash flow problems, which may make or break your finances.
No matter how irregular your income is, if you know how to set up your budget, you can
Here are tips that will ensure you are ready to face the irregularity of your income.
Take into Account Your Fixed Expenses
Some expenses are almost always consistent in terms of the amount you need to pay. Examples are your rent, insurance, mortgage and other expenses that are always fixed. Make sure to set aside this amount regularly.
Estimate Your Variable Expenses
Like fixed expenses, there are costs you have to cover each month. However, these expenses tend to fluctuate. The best example is your utilities. Utility costs would always depend on your usage. If you can estimate your usage, then it’s easier to set aside the amount you need to pay them.
Get Rid of Luxury Expenses
Sure, it’s nice to get a brand new phone, but can you justify the reason to buy one? Try to limit
your luxury expenses. If you can eliminate it, then it’s even better. Limiting or eliminating your luxury expenses will help with your budget.
Be Prepared for the Unexpected
In life, it’s impossible to plan for everything. Many things can happen, like equipment maintenance or repairs, car repairs and even medical costs. It would help you if you have built yourself an emergency fund so that you can pay for these emergencies when they happen.