Millennial Money: How to budget with a fluctuating income
Freelancers, service workers, people who work seasonal jobs and those who earn money based on tips, royalties or commissions often experience fluctuating income during a month, season or year
If you’ve ever lived off of tips or commissions, you may be familiar with the up-and-down paychecks common in certain industries. Service jobs, sales jobs, creative careers and project-based work can all have fluctuating income, where seasonality, events or the general economy might affect your earnings.
When you can’t depend on a regular paycheck amount or paycheck timing, it can be hard to know how you’ll make ends meet when money isn’t as abundant. With some planning, budgeting and creativity, however, it can become easier to weather a varying income.
CREATE A BUDGETING PLAN
Lawrence Sprung, a certified financial planner and author of the book “Financial Planning Made Personal,” works with several financial clients who are romance novelists. These authors live off of book deals and royalties and often have to budget differently depending on their publication cycle. Sprung and his firm help these clients determine their expenses so they can figure out how much they need to save, he says. Even without the help of a CFP, there are steps you can take on your own to get your budget on the right track.
