To grow an irregular income is a lifestyle and not a task.
Most entrepreneurs make their money from freelance and many other online businesses that do not have a regular paycheck. This year alone, we have over 57.3 million freelancers in the U.S today. While being an entrepreneur is an exciting aspect of life, the unstable and irregular income might not be because you never know how much you might make in a month, making it difficult to plan.
Some months we make a lot of money, while others not so much with income rapidly dropping. This is challenging and most of the time, pretty annoying and if you are in this position, looking for a way to manage your irregular income, month after month, here are some of the best ways to do so:
Make a Budget
Establish a budget that shows the least amount needed to go through the month, such that it identifies every money that and leaves your account. This budget will act as a spending plan for your money so as it comes, you do not spend it on irrelevant things.
Making Savings Compulsory
As you make a budget for your expenses and bills, make sure you also save some. You can do this by identifying the percentage of your income that would go into savings, irrespective of the fluctuations in income. You can use the auto-debit feature to move money from a checking to savings account, making this a necessity than an option.
Start an Income Stabilization fund
The good side of having a fluctuating income is that you can make way beyond your expectation sometimes. Your savings have been paid for the month, your bills have been paid and you still have way more to spend, this is where this income stabilization fund comes in. It is a separate savings account you put money into when the times are good, having from three to six months of living expenses, where you can take from only when things are not so great.
Find a Pattern
Irrespective of the irregular and fluctuating nature of your income, there are patterns. These are patterns that show when you earn more or less. This pattern helps you plan for the low times and allows you to still enjoy the low times until things become better.
Develop a Side Income
One income is not the way to go for anyone these days. Finding a side hustle, you can manage helps cushion your fluctuating income. Not too much, because too much would not help with your other job, simply take up a reasonable amount that you can handle alongside that would help ease the tension of incoming expenses.
Maintain a Good Financial Mindset
There would definitely be good times as the year goes by when things are going as planned and you feel like you’re in the A-game. This is not the time to spend anyhow as doing this would not be the best idea. If times are great, you can up your savings as well as your income stabilization savings and make the best of the season. You have a lot to achieve and changing your standards would definitely not be the best thing to do. Maintain the mindset you had when things were tight and don’t go buying things you do not need.
I have to say on a personal note, not having a stable income is really daunting. I mean you basically have to be on your toes the whole time but the truth is, if you must be financially stable, this is the best time to attain financial discipline, which is something most people lack today, making it difficult to make the best of what they have.
Money comes, money goes, what you make out of it, would determine what would become of you. You control your funds; they do not control you.
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