Hello everyone! My name is Brenda Butnick and I’m a Financial Coach at Jewish Family Service in Dallas. I work one-on-one with clients to help them achieve financial self-sufficiency.
We discussed How to Budget with Irregular Freelance and Gig Income
in my last blog and today we will discuss the steps to take now to Budget with Irregular Income.
Budgeting with an irregular income requires building a “barebones” budget based on your lowest-earning month, tracking income fluctuations, and using high-income months to build a buffer for leaner times. Prioritize essential expenses (housing, food, utilities), create a “boom-and-bust” savings fund, and set up a separate bank account to manage cash flow.
STEPS TO TAKE TODAY:
1. Track all spending: Record every expense for 30 days to see where money is going.
2. Separate your money: Use a separate savings account to store excess funds for leaner months.
3. Prioritize spending: Rank expenses in order of importance, starting with essential needs.
4. Review regularly: Reassess your budget frequently, ideally every pay period, to adjust to current earnings.
We will discuss The Importance of Emergency Funds in my next post on Friday, August 7th.
That’s all for your Financial Fitness today!
Until next time – take care and stay financially fit!
