How I Design A Flexible Budget For Variable Income

If you are struggling to manage your money with a variable income, a flexible budget may be your secret weapon. 

Variable incomes are much more prevalent now than in the past. According to the Bureau of Labor Statistics, at least 21 million American workers do not earn regular and predictable income.

– Contingent/temporary job places – these workers are either employed directly or work through temporary agencie – Independent contract work – On-call work with no regular hour – Work through contract firm

The most common employment for variable incomes include:

All of the above and many more people do not have a fixed income every month. These and millions of other workers rely on a wage that fluctuates based on factors beyond their control.

Understanding A Flexible Budget

You can look at a flexible budget in terms of corporate finance or personal finance. Corporations have complex formulas and software to streamline their accounting period budget report based on the earnings every month.

Corporations alter their budgets based on varying costs and revenue. The budget comes out at the beginning of a fiscal year based on the amount of money the business has, its needs, and the expected revenue.

Corporate Finance

Personal Finance

Personal finance and personal flexible budgeting are essential to millions of people around the world. Unlike corporate finance, where a budget comes out at the start of a fiscal year, personal finance requires managing a budget every month, because this is how billing cycles work.

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