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. 

The most common employment for variable incomes include: 

– Contingent/temporary job places – these workers are either employed directly or work through temporary agencies – Independent contract work – On-call work with no regular hours – Work through contract firms – Freelance work – Businesses

If the income you get every month varies, there is still a way you can create a budget that meets your monthly needs and even allows you to save

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. 

Corporate Finance

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. 

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. 

Budgeting For Variable Income

As a non-salaried worker, such as a solopreneur, freelancer, seasonal businessperson, or contingent employee, you need to come up with a budget that accommodates your varying needs. You need to build a sustainable and realistic personal budget that fits your irregular income. 

Follow The Simple Steps Below To Create Your Flexible Budget:

- Add Up Your Fixed Spending - Calculate The Average Variable Expenses Per Month - Calculating Your Average Monthly Income - Remember To Include Savings - Pay Yourself - Separate Your Fixed And Variable Expenses

Advantages Of A Flexible Budget

- Avoid Overspending - Create Opportunities - Review Your Earnings - Plan Ahead

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