Five Steps To Living With An Irregular Income

Automating your finances assumes that you get paid consistently or that you will always have enough money in your account to compensate. We currently have neither.

Since the trusty automation of all your bills will not work, you are now first to come up with alternatives. Over the past five years of this rollercoaster of a career, I’ve come up with five steps to living with an irregular income.

Know Your Average Monthly Expenses

Knowing your average expenses is essential to everything. If you don’t know how much to tend to spend monthly, you cannot plan for anything.

Know Your Yearly Expenses

Looking at early expenses also lets you include those quarterly, bi-yearly, and yearly expenses that you don’t always think of every month.

Know When Everything Is Due

Since your paychecks are all over the place, you need to know exactly how much you need and when you need it to avoid the dreaded overdraft.

Pay Your Bills Ahead Of Time

This is the closest we get to automating. Since we cannot plan for a paycheck every other week, you take of everything when you do have the money. That means you pay your mortgage out one-three months.

Have An Emergency Fund

The emergency will be your closest and dearest friend. In the months where you have no paycheck, this fund keeps you afloat, and you don’t have to worry.

Make Your Goals Yearly

If you are looking at your goals yearly, then you can plan and project based on how much you made last year. You can make the yearly goals of maxing out for IRA ($6000), maxing out your 401K (if it’s an option), and putting X amount into investments.