A common situation for many in the UK right now is the fact that income is irregular, and not consistent. We cannot be sure what wages will come in each month, which naturally makes life very difficult. It also makes covering bills and essentials tough. We take a look at how to budget with an irregular income.
How To Budget With An Irregular Income – Calculate Your Expenses
First of all, you need to work out what each month costs you. your outgoings, basically. Irrespective, expenses tend to be more consistent. So it gives you an idea of the basic lowest level of income you need each month to get by. That is your starting point. you may want to make this process easier by utilising technology. There are apps and spreadsheets out there that do the calculations for you and provide easy to digest reports whenever you require them. Don’t forget to include the few irregular expenses though, such as costs for birthdays and Christmas.
Prioritise Those Expenses
After calculating expenses, you need to rank them, should you struggle to meet your costs. After all, some expenses are more important than others. Your mortgage or rent is a must, as is feeding you and your family. Also crucial is paying your energy bills, and other regular bills, such as council tax. Through this process, you may discover that some of your expenses are not important, not essential. you can then cut them out and make savings,
When You Have A Good Month, Save.
The best way to cope with a month of low income is to have a reserve fund that you can dip into to help pay for that month’s costs. You need to have an idea of what your average monthly wage is, and in months when you earn more, try to put something aside if possible. Then when lean times arrive, you are prepared.
How To Budget With An Irregular Income – Be Disciplined On Pay Day
I used to get an annual bonus in my first job after university. It was performance-related, and was intended to top up a quite awful basic wage. Being young and naïve, i naturally wasted half the bonus in one weekend. and lived the rest of the year in relative poverty. You have to be disciplined when money arrives in your account. That money is to see you through the period until the next wages arrive. It is not to be frittered away or used for treats. Ensure you allocate wages in the correct manner.
Re-evaluate Regularly
Circumstances change, as does income and expenses. so you must regularly sit down and go over your budget again. Things may have changed and your situation needs to be assessed once more.
Consider Extra Income
There are a few ways to make extra income without going the traditional route of getting an office job or a job on the tills. Have you heard of matched betting for example? This is a way to make a lot of money without leaving your home, and at times that suit you. It basically involves using welcome offers from bookmakers to make extra money. It is also risk-free as you use free bets to make money, without risking your budget on bets that may leave you out of pocket like normal gambling does. Check it out.
