Posted on: 07th Sep, 2006 09:15 pm
How can I budget for irregular expenses?
Jack
Jack
Hi,
Welcome to the forums.
You will have to take some special precautions if you are having irregular income. First of all you will have to calculate your average income in a month.
There are 2 main problems that you need to avoid
Since you are estimating, you need to leave some room for errors. So its important that you plan and keep your expenses 7% - 12% below your average income.
If you are able to do this successfully, you may end up with about 7% -8% of your income left over.
Thanks,
Jerry
Welcome to the forums.
You will have to take some special precautions if you are having irregular income. First of all you will have to calculate your average income in a month.
There are 2 main problems that you need to avoid
- Spending more than your average income
- Running out of money, even if your average income is ok
Since you are estimating, you need to leave some room for errors. So its important that you plan and keep your expenses 7% - 12% below your average income.
If you are able to do this successfully, you may end up with about 7% -8% of your income left over.
Thanks,
Jerry