How to Budget on an Irregular Income

Commission sales, minimum wage careers and jobs that pay under the table are all ripe situations for an irregular income. Getting a $500 check one week is wonderful, but not if you won't be paid for another month! Budgeting can be difficult when you don't know when the money's coming. Here are some surefire ways to save a few bucks for rent, bills and most importantly, food.

Instructions

1. Know your bottom line. You are probably thinking, "But I don't know my bottom line because I have an irregular income! Duh!" Estimate the bare bones amount you will bring home in a month. Underestimate yourself. If you think you'll bring home $1,000 this month, consider your bottom line to be $900.

2. Write down what you can't live without. Be serious about this. Rent, mandatory bills, food--these are the essentials. Don't think in extremes, but be realistic. If you are considering living in a cardboard box so you can afford flavored coffee and gourmet meals, you may need to reconsider your priorities.

3. Add the runners-up to that list of essentials. You should have two lists--things you can't skip out on paying each month and things you would like to have each month. Budget your income to cover the "can't live without" list. In other words, does your bare bones monthly income cover the roof over your head and nutritional supplements? If you have money left over, feel free to splurge on the flavored coffee (or maybe consider a savings account).

4. Avoid debt. Money borrowed is hard to pay back on an up-and-down income. Don't spend the money if you don't have it. Easier said than done? Maybe, maybe not. If you are consistently spending more than you bring in, go back to Step 1 and start over. Your budget is not coinciding with your bare essentials. Or more likely, your bare essentials are not so bare!

5. Save, save, save. Again, easier said than done, but consider this. Put a set amount of money in your "can't live without" budget, and you will find that you treat that money with the same importance as you do the rent and groceries. Ideally, one should not venture into an irregular income situation until they have enough money for 3-6 months of living. But life's not always that uncomplicated. If you don't have a savings and your income cannot be made consistent, always incorporate that set amount into your budget.

6. Supplement your income with something steady. An amount as small as $50 or $100 a week can be a big weight off your irregular income shoulders. Creating a budget with no real idea of what you will bring home is very difficult. A small supplemental income will give you a rock-hard cornerstone for your unsteady month ahead.

Tips & Warnings

• Don't spend like you've just won the lottery. Irregular incomes have that roller coaster feel of being really high and really low. Give up those high times to savings, not to the mall!

• Don't count on bonuses as part of your income! This is a major pitfall for people budgeting with an irregular income. Is that commission or bonus really a guarantee? Consider these extras as income only after you have the check in hand.