Budgeting Inconsistent Income

Budgeting Inconsistent Income | When your income is inconsistent, budgeting can be difficult. ladonnaharris.com #finances #budgeting #largefamily #debtfreeMy husband and I are self-employed and his business is somewhat seasonal. Budgeting inconsistent income has become an adventure for me. I always love a challenge so I took it head on.

I love working the numbers and figuring out the best way to pay the most bills and still allow for groceries, gas and business expenses. While our income is inconsistent, we do have a couple of consistent amounts that come in each month. I use those to pay most of the bills and utilities. Any automatic payments also get set up for after the 20th because I know the money will be there. I plan for that.

So what’s my nitty gritty process?

Almost all my bills come via email, so I go back through and determine the “paid in full” amount to get each to zero dollars owing. Some months we can do this, some months we can’t. Then using CalendarBudget.com I enter in the money I know is coming, deduct the automatic payments and bills I pay manually and pray the number is “in the black”. If I can’t get all the bills to zero and still buy groceries, I juggle the utility payments until I can. Once the bills are covered, any extra money that comes into the account gets is slotted for business expenses first and as needed, groceries, personal fuel and other necessities.

Based on Dave Ramsey’s Four Walls, we cover the utilities, the vehicle fuel, groceries and basic/required clothing. If the power and heat are not in danger of being shut off and there is food on the table, we worry less and focus on bringing in more income. With fuel in the trucks and the necessary clothing, we can make that income to get the rest caught back up again.

Tell me about your budgeting process. Or do you just fly by the seat of your pants?

Do you face the struggle of budgeting inconsistent income too?

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