I know that there’s a large group of people whose family economy is powered by irregular, seasonal or cyclical income. As I’ve continued to travel and meet people this recurring question comes up – “How do I budget when my income is irregular, unpredictable or seasonal?” In this blog post I want to address this exact question.
Real estate agents, hair stylists, commissioned salesmen, and business owners all experience cyclical income.
Several times, I’ve heard from people it is impossible to budget when you have this type of income. They say budgeting is impossible because they have no idea how much they will make each month. I say it is not only possible, but people with irregular income need a budget more than anyone!!!
For this very reason, I’ve broken budgeting with irregular income down into 4 steps. And here’s a hint – It’s EZ!!!
STEP ONE Recognize it!
You must recognize that you have irregular income! If you have ever starved to death during the “off” season, you KNOW what I am talking about! In order to stop having your life severely impacted by “off” seasons, you must prepare!
If your family economy is powered by irregular income, what do you currently do to prepare for the “off” seasons?
In Step Two, we’ll go over actually PREPARING a budget with cyclical income!