Budgeting With An Irregular Income

Whether you work in a tip-based or a hustle-based profession, unpredictable income is a pain in the butt. Should you still budget? Can you still budget? Of course! It's so easy to get stuck in a cycle of paying off your debt when you're flush and relying on credit cards when you're broke. A budget will help you with that. But first, you have to get real.

Not that real

First Of The Month

Sunday is always a good day to sit down and set your plans for the week. This Sunday is also May 1st, so it's a doubly good day to get your life in order. Take a look at your calendar for the month and get it together. Make note of any upcoming expenses, like birthday gifts, car inspections, etc. Most importantly: take a look at your budget and make adjustments. A quick check-in with fresh eyes can help avoid financial mishaps this month. 

In the past few weeks we've had a few things come up (for better and worse) that require a few budget tweaks. Here's my new and improved budget for the month of May: 

Common Money Mistakes

Oops, you did it again.

Mistakes happen, that's a fact of life. Adulting means you have to fix them. But how? Here's how:

Money Mistake: You have no idea where your money goes.

How do you fix it? Make a budget! It is the most basic thing you can do and will open your eyes to all the ways you are pissing money away. Check out my post on budgeting basics HERE! If you get through your transactions and see that you've spend $100 this month on drinks out with friends, but $0 on paying down your credit card debt then it will become really real. Invite your friends over for some BYOB and Netflix then immediately make a payment to your credit card. You'll be glad you did!

Money Mistake: Not having an emergency fund.

How do you fix it? Save a chunk of money! $500-$1000 is usually enough to save your butt if something unexpected happens. Aim to have 6 months of expenses saved in case of a dire emergency. Start saving and don't stop until you hit your goal. How much can you save? I don't know, but you should. Look at your budget and see what you can trim to save a bit of cash, then stash it away for a rainy day.

Money Mistake: Spending on things you could get for free.

How do you fix it? Go to the library! Music, books, magazines, printing services, classes, book clubs, arts programs, volunteer opportunities, and snacks all await you at your local library. Get on their website and poke around, you're sure to find something you like. Attend a clothing swap (or organize one with friends)! Borrow a tool from a friend instead of buying one. Shop your closet. Go for a walk in the park instead of the mall. Go to the museum on a free day. Do something besides eating out at restaurants when you go out with friends. There are lots of free options, and if you're broke you need to find them.

Your mistakes don't define you, how you rebound does. Who do you want to be? Pick a Britney, bitch.

Spending Money to Save Money

As I've discussed before, sometimes you need to spend a little to save a little. If you have the option to spend a bit more on a quality version, go for it! Even better if you can spend the same amount or less than you would over time!

My Own Budget

As I discussed, I will be publishing my monthly budget here and showing how I make it work. Take a look! 

Making Money

Until science finds a better way, the only way to get something done is to do it. So, you've trimmed as much as you can from your budget and the people at the library are tired of looking at you. You have eaten 10 PB&Js this week. You ride your bike to work. And you still can't make ends meet. 

All that's left to do is make more money. Here's some ideas to get you started: 

Saving Money

Saving money is hard, there is no doubt about that. Spending money is easy. SO EASY. Why is it so easy?? Just an "I deserve this!" here and a little "one won't hurt" there and before you know it, you're afraid to check your bank balance. How are you supposed to save when you like to spend? 

It's tricky, but not impossible. 

Retirement Savings Basics

How much should you put aside for retirement? As much as you can. Look at your budget (you have one, right??!) and see what you can spare. Just as you would with short term goals, think about what you want for you retired life and what you're willing to give up now to get there. As you get older, these goals might change, but try and settle on something for now. 

For me, I would like to sell any property that we own and travel as much as possible. We would need a small cottage in Mexico or a pied terre in a city offering international flights as a "home base" and that's it! That could change, but for now that's what I want. So how to get there? 

Menu Planning Basics

Yeah livin the raw deal, three course meal: spaghetti, fettuccine, and veal. - Puff Daddy, "All About the Benjamins" 

After shelter, food is usually the biggest item on your budget. So how do you cut costs on food?

Budgeting Basics

Money is the key to end all your woes, Your ups, your downs, your highs, and your lows. Won’t you tell me last time love bought your clothes? - Run DMC, “It’s Like That”

Having money's not everything. Not having it is. - Kanye West, "Good Life"

Like it or not, cash rules everything around us. An understanding of finances is necessary to survive and thrive. A budget is your first step towards success. Tell your money where to go and you won't wonder where it all went. Here's how: