If you don't have a steady paycheck, creating and sticking to a budget can seem like an impossible task. Sure it can be difficult, but it can be done. Perhaps you are self-employed or employed with a company who does seasonal work. Below are a few helpful tips that can help you to make a budget when you have an irregular income.
Determine Your Total Income
Before you can create a budget, you’ll need to figure out how much you earn monthly. This includes amounts you may receive from the government and other forms of income. While the amount you earn may vary from month to month, review your pay stubs and bank account to figure out an average. This will help make planning and making a budget much easier.
Determine Your Necessities
The first step in planning a budget is figuring out what you simply can't do without. Things like utilities, your mortgage or rent, food, gas, etc., need to be covered first and should be your priority. Once you’ve reviewed your list of necessities, move on to the ‘extras’. If you find yourself struggling to pay the inevitable due to an unforeseen expense, fast loans that are free of credit-checks are available at www.24cash.ca. Borrow a small sum that is easy to pay back and get back on your feet quickly.
Treat Yourself A Little
Every budget needs a little wiggle room. Entertainment is essential to enjoying a happy life. However, the amount of your budget spent on entertainment should be limited. Plan to have monthly outings that are inexpensive, such as going to the movies or eating out with your loved ones.
Don't Forget About Savings
While it can be hard to save when you don't have a regular pay check coming in, you should. Saving a little extra cash is very important and should be done whenever possible. During the months that you earn more money, don`t be tempted to spend much more but put some money aside. By putting away 10% of your income, you will be able to save for those unexpected bills or emergencies. In time, you may even be able to set aside some money to start a simple investment plan.
Track Your Progress
Once you have your budget made and you’ve been able to utilize it for a few months, think of tracking your progress. To do so, you will need to record all of your spending and your balance at the end of the month. There are many online tools that can help. By keeping an eye on your budget, you will be able to see where it might need adjustments. Even if you don't have a steady paycheck coming in, you can still stay on top of your finances.
These tips will help you set up a budget while living on an irregular income. Remember that it is important to save for the future and always cover your necessities first. By doing so, you will be less stressed and you will be able to enjoy life a little more.