Financial Preparation: How to Cover Everything When Your Monthly Income Varies

It’s easy to pay all of your bills when you have a secure and regular income, but if the amount you earn each month varies, it can be difficult to stay on track. There are more people working for themselves than ever before, whether as a full-time job or to earn an additional income on the side. So, how do you stay on budget when you don’t know what’s coming in?
tight monthly budget
Look at What You’ve Earned
The best way to create a budget is to look at what you’ve been earning for the past year. Although your income may have varied each month, you should be able to come up with an average monthly figure that will balance out your income for the year. If you want to budget month by month instead of per annum, look at what you earned this time last year, take all of your monthly bills into account and figure out how much you’ll have leftover or how much extra you’ll need to earn to meet your requirements.
Write Out Your Expenses
If your income varies dramatically, there may be months where you’re unable to make the money you need to pay all of your bills. In this case, you’ll need to create a list of your expenses and prioritise them. When you’re only able to pay a few of your bills, you’ll need to pay the most important ones first. For example, your rent is a high priority but your Netflix payment is one you can afford to miss. When your next payment comes, do your best to pay any bills you’ve missed so you don’t fall into debt.
Expect the Worst, Hope for the Best
When you have a job that pays well some months and pays poorly other months, saving is the key. It’s important to save as much of your money as possible for unforeseeable events. This could be anything, from being unable to pay a bill one month, to needing Rawa Law Group because of a car accident the next month. It’s impossible to know what the future will bring, so some financial planning is a must. It’s best to expect the worst but hope for the best so you’re always prepared.
Review Your Income
The longer you have a varied income, the better you’ll become at predicting how much you’ll earn. For example, you may earn more during the Christmas holidays when everyone is shopping for loved ones, or you may earn more during the Summer because your job is seasonal. Whatever the conditions, learn to spot the similarities in your income. When you do, you’ll be able to recognise when you’re likely to earn more than usual and when you might struggle. You can then plan accordingly.
Plan for Additional Expenses
There may be times when you have to spend extra money, perhaps for a family member’s birthday or extra travelling you need to do. Try your best to put aside money for these things in advance, so you don’t have to take large chunks out of your monthly budget.
Covering everything with a varied income can be difficult but with a bit of organisation it is possible.

Denny Jones

Hello, I'm Denny Jones, the voice and mind behind this personal finance blog. With a passion for helping others achieve financial independence, I started this blog to share my insights, experiences, and strategies in managing money. Whether you're just starting out on your financial journey or looking for advanced tips to optimize your wealth, my goal is to provide practical and actionable advice that anyone can follow.

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