Comments on: How to Budget with Irregular Income

By: Deb

Deb — Fri, 12 Feb 2010 13:43:32 +0000

Brilliant! I am starting this plan today. Before I went back to college, I’d always had salaried jobs. Now I’m a nurse, and although I make much more on the hour, I’m really struggling with the variable income. You plan seems simple and effective. Thanks.

By: Kat

Kat — Mon, 19 Jan 2009 16:44:16 +0000

This is just brilliant. I know this is coming almost a year later, but I just had to say it out loud! I will be showing this to my husband. Thanks for writing this.

By: 5 Common budgeting myths

5 Common budgeting myths — Tue, 21 Oct 2008 10:07:39 +0000

[...] Sure, but it’s for people with variable incomes as well. In fact, people that live on variable incomes are the ones that need to budget the most. Budgeting on a variable income is different though. Lynnae from Being Frugal has a great article on how to budget with an irregular income. [...]

By: Father Sez » Archive » Round up for week ending 13 March 08

Father Sez » Archive » Round up for week ending 13 March 08 — Thu, 13 Mar 2008 10:43:56 +0000

[...] How to budget with an irregular income, came at the right time for me. I am a trained finance professional and yet I did our household [...]

By: Prime Time Money: Big Winner Roundup | Prime Time Money

Prime Time Money: Big Winner Roundup | Prime Time Money — Sun, 09 Mar 2008 05:40:29 +0000

[...] Being Frugal shares her thoughts on budgeting with an irregular income. [...]

By: PT

PT — Sun, 09 Mar 2008 02:08:44 +0000

Folks in sales will benefit greatly from this. Great resource.

By: GBlogger

GBlogger — Sat, 08 Mar 2008 17:13:09 +0000

Great post. We have been doing something similar with my income, which is also irregular. One additional thought: we reserve for the bigger expenses that come up only once or twice a year, such as homeowners’/auto insurance and property taxes. This could be done either out of the suggested “salary” or separately — but the process is similar. Calculate the total of these big expenses and divide by 12 or 24, depending on how often you want to contribute toward the reserve.

By: Shana

Shana — Fri, 07 Mar 2008 06:07:40 +0000

I completely agree with all of this! I’d really love to find a good personal finance book geared towards the self-employed (or others with variable income). I’m sure some exist, but I’ve just not found them.

The other thing to consider in this situation is the emergency fund. I sometimes have 1-2 month dry spells, and the only reason I don’t live off my credit card is because I plan for this. My emergency fund is always higher than the often recommended $1k, even though I’m paying down debt. (I wrote about this in December.) I know I could be paying my debt down quicker, but the peace of mind and liquidity in lean times is worth the tradeoff, for me.

By: Lynnae

Lynnae — Fri, 07 Mar 2008 05:35:31 +0000

@Kris – Health insurance is a sore subject with me right now. I can’t get approved for private insurance, because I get migraines. Nevermind that I treat them with over the counter meds, but whatever.

We’re going to be getting insurance through my husband’s job pretty soon. It’s really expensive, and it’s medical only (no dental), but it’s better than nothing.

My suggestion would be to find a reputable insurance agent in your area and see what your options are. I was working with a pretty good agent, and I’m sure she would have come up with something for me, had my husband not found a job with insurance.

Best wishes, and if you come up with some interesting solutions, let me know. Insurance is a headache.

By: Kris

Kris — Fri, 07 Mar 2008 02:27:16 +0000

These are all good ideas, Lynnae. I’m a freelancer, and it’s getting more and more difficult to find consistent work. I’d love to know if you have any thoughts and/or a plan for health insurance, too.