songsparrow Posted March 11, 2013 Share Posted March 11, 2013 How do you budget when your income is variable - for example, from commissions? Any suggestions, advice or tips would be greatly appreciated! Quote Link to comment Share on other sites More sharing options...
Spryte Posted March 11, 2013 Share Posted March 11, 2013 Do you have a base salary? Quote Link to comment Share on other sites More sharing options...
Mnemosyne Posted March 11, 2013 Share Posted March 11, 2013 I use last month's income for the next month's expenses. So, any money I make in February gets used in March. This allows me to budget in March for the exact amount I made. It takes a little while to build this buffer, but it makes life so much easier for us. Quote Link to comment Share on other sites More sharing options...
songsparrow Posted March 11, 2013 Author Share Posted March 11, 2013 There is a base salary, but it's not enough to cover bare-bones expenses. Quote Link to comment Share on other sites More sharing options...
Spryte Posted March 11, 2013 Share Posted March 11, 2013 There is a base salary, but it's not enough to cover bare-bones expenses. Oh, okay. I would go with a version of FionaS's approach. Maybe prioritize your monthly expenses in order of importance, and take a few months to build a buffer for extras. We have a variable income, too, but not quite as variable! Quote Link to comment Share on other sites More sharing options...
Lily_Grace Posted March 11, 2013 Share Posted March 11, 2013 I agree with FionaS. Make a "Hills and Valleys" account attached to your checking account. Make your monthly budget based on every-month expenses (and yearlies, too, if that works better for you) and then on high months, put the overage into the attached account, and during low months take enough from the account to cover your budget. Quote Link to comment Share on other sites More sharing options...
aggieamy Posted March 11, 2013 Share Posted March 11, 2013 Another vote for a hills and valleys account. We have our own business and our pay is not constant at all. We can get paid nothing for four months and then make $10k one month and $30k another month and then not get paid again for awhile. It's really hard because when you get paid you feel like everything is grand and then you start getting nervous again ... Quote Link to comment Share on other sites More sharing options...
TraceyS/FL Posted March 11, 2013 Share Posted March 11, 2013 I use last month's income for the next month's expenses. So, any money I make in February gets used in March. This allows me to budget in March for the exact amount I made. It takes a little while to build this buffer, but it makes life so much easier for us. That is the premise of YNAB - you need a budget. The OP might download their trial and see if that works for her! My boyfriend is paid this way - and i think i'm going to wrestle his finances away from him.... except he isn't going to like it. :p Quote Link to comment Share on other sites More sharing options...
Lara in Colo Posted March 11, 2013 Share Posted March 11, 2013 On good months I over pay certain things that I know will be needed (like car insurance). I have a good freezer/pantry stock. I try to have a kitty for birthdays and extras (like Easter baskets). I buy stuff when I can and put away for later. Quote Link to comment Share on other sites More sharing options...
Mnemosyne Posted March 11, 2013 Share Posted March 11, 2013 That is the premise of YNAB - you need a budget. The OP might download their trial and see if that works for her! My boyfriend is paid this way - and i think i'm going to wrestle his finances away from him.... except he isn't going to like it. :p I use YNAB. I can honestly say that it saved our finances during our last couple years of university ad the arrival of our oldest. I only wish I had found it earlier. ;) Quote Link to comment Share on other sites More sharing options...
TraceyS/FL Posted March 11, 2013 Share Posted March 11, 2013 I use YNAB. I can honestly say that it saved our finances during our last couple years of university ad the arrival of our oldest. I only wish I had found it earlier. ;) I have it.... I just need to USE it! Quote Link to comment Share on other sites More sharing options...
Random Posted March 11, 2013 Share Posted March 11, 2013 I use last month's income for the next month's expenses. So, any money I make in February gets used in March. This allows me to budget in March for the exact amount I made. It takes a little while to build this buffer, but it makes life so much easier for us. We do this, too. On good months I over pay certain things that I know will be needed (like car insurance). I have a good freezer/pantry stock. I try to have a kitty for birthdays and extras (like Easter baskets). I buy stuff when I can and put away for later. And, this. We never ever spend 'extra' money. If there is something extra, it has to be saved. My husband will go months without a paycheck, and it's been vital to have a decent pantry and minimal fixed expenses (no debt). My advice: 1- no debt 2- save every penny you can 3-know exactly what your expenses are 4-always know when irregular expenses are coming up (car insurance, property taxes, etc.) 5-be willing to do without, rather than incur debt (for something not essential) Quote Link to comment Share on other sites More sharing options...
songsparrow Posted March 11, 2013 Author Share Posted March 11, 2013 Thank you, everyone! I will be putting your advice into action. Quote Link to comment Share on other sites More sharing options...
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