Money Management Tips for Irregular Incomes

Control spending from self-employed
work with money management tips

Irregular family incomes may appear to obstruct typical monthly budgets, but the experts at the Equifax Finance Blog say they don’t have too if you follow a few simple money management tips. In their recent article, “Creating a Budget with an Irregular Family Income,” experts list four great ways to handle a fluctuating income and still make financial plans for big purchases like an Atlanta new home.

Quite often people with irregular incomes are self-employed, like entrepreneurs who have access to business and personal accounts. This is a precarious line to walk on when trying to set financial goals, because the temptation to over-spend is always present. Experts suggest that the temptation is less if you pay yourself a set salary every month. This allows you to create a reliable monthly budget and lets you have the semblance of a normal month salary. However, the trick with irregular income is to set your monthly salary low enough to still receive it on your lowest income months. Maintaining a consistent income is the goal, so even leanest months will be covered and then you have more flexibility to grow your business accounts in richer months.

Occasionally, bonuses are okay to give yourself when your business is really profiting. The experts at the Equifax Finance Blog believe that the best time to do this is after paying taxes in the springtime. This ensures that key expenses will be covered and you won’t be short on money if you end up owing Uncle Sam a little more than anticipated.

For other smart tips and ways to manage your finances, visit the Equifax Finance Blog.