In the grand scheme of things, income is rarely stable even if you’re paid a regular salary. And was that a big “Amen!” I just heard from the freelancers and independent contractors as to how true that statement is?

While we’ve talked a lot about budgeting a time or two already (https://jmvfinancialservices.com//budgets-friends-not-foes and https://jmvfinancialservices.com//8-forgotten-expenses-to-factor-into-your-budget), there’s no time like the present to review the concept but this time with a bend toward those aforementioned Amen-ers.

But don’t check out just yet, salaried people! You might just find these five steps useful in helping you sock away that extra emergency cash you’ve been wondering where to find and how to save up.

1. Calculate your “desert” amount. Finding out what your “driest” money month was over the last year is one of the best places to start. Once you have that number and build your budget around working from the “worst,” those better money months will almost se
em like you’ve hit the jackpot.

2. Tally up your expenses. Adding up all of your expenses — including those sneaky “undesirables” such as car repairs, taxes, medical expenses, home repairs, blah blah blah – will help you know what’s going out, in which order the bills get paid and where any extra cash can go during your money monsoon.

3. Live on a minimalist’s budget. Once you get used to living off of a “bare bones” budget it’s always a good idea to stick to those numbers even wh
en the dry months are all the way behind you. You’ll definitely learn a lot about yourself, how resourceful you are, and how good it feels to be financially prepared for anything life decides to throw at’cha.

4. Keep the faith. Even in the driest of dry spells, keep your head up and your hand out of the credit card companies’ traps! Accruing debt while you’re feeling parched is like using a generic bandage to cover up a severed artery. It might seem to help in the short-run by keeping you current on you expenditures, but we all know with credit cards come interest, more stress and a longer “relationship” you’ll have with the credit card company people.

If you still have questions about stabilizing your budget on an unstable income, click here to schedule your free strategy session today.
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