What is the best way to create a budget when you’re always getting paid different amounts?
Cindy C asked:
What is the best way to create a budget when you’re always getting paid different amounts? My husband works different amounts of hours each week, sometimes 40 and some times as much as 75 so obviously the pay is always different. What is the best way to caluclate a monthly buget? I am so bad at this type of stuff so anyone with good advise, leave some!
What is the best way to create a budget when you’re always getting paid different amounts? My husband works different amounts of hours each week, sometimes 40 and some times as much as 75 so obviously the pay is always different. What is the best way to caluclate a monthly buget? I am so bad at this type of stuff so anyone with good advise, leave some!
February 1st, 2009 at 12:39 pm
I advise my clients to budget with the least amount, so in your case 40 hours a week. Which, in actuality, is normal for most people. Overtime is gravy and not always guaranteed. So any amount over the base amount should be allocated to an emergency fund or paying down debt.
February 4th, 2009 at 9:19 am
My best advice would be to add up all of your bills and see how much it seems that you will spend monthly. From there you can save some money or have a little more to play around with (like going out to eat or buying that new Mp3 player). Then, with the savings, you will can have some to get by on the leaner times or if there’s a birthday and you want to get someone a special something.
February 6th, 2009 at 4:15 pm
Average your monthly expenses those should be fairly constant add a categories of disposable income and savings. Average your husbands last years income —add them all together and divide by 12. You can expect this to be your income on average. Begin by putting away anything over the necessities you must pay into the savings account. This will give you a source for unexpected expenses or unexpectedly low income—it acts like a line of credit but you are gaining interest not losing it.
When this makes sense to you and you have the knack of it, begin paying off any credit card bills you may have as much as you can afford not just the minimum. If you pay only the minimum those charges will be around for 20 or 30 years. Use credit cards only for purchases that you can pay off that month. If you don’t have the money, you can’t buy it.
You are saving big by eliminating interest charges. You already have a savings account now begin adding to it and collecting interest even if it is low yield. You can expand to cd’s (not the music) and treasury funds. As you get more savy, you may want a financial adviser—maybe just someone where you bank.
February 7th, 2009 at 1:48 am
Try to go by the average number. Say, your husband made so much money during the whole year. Take that amount divide it by 12 and you will have an average monthly income. Tie your budget to that. When your husband makes more money than expected during a particular month, save the surplus and don’t spend it. When your husband makes less than the average take the money out of the savings account to compensate for the shortage.
February 9th, 2009 at 11:35 am
List all of your expenses and list them putting what they are, and how much you pay in a month, then prioritize them. Usually shelter/food/utitlies come first. When you get paid, you can pay down the list, for the things you need.
February 12th, 2009 at 7:09 am
To help you with budgeting I’d recommend a personal finance software by a business called Parcus Group.
Easy to use program with features including budgeting, financial planning, real estate analysis, shares valuation, life insurance…
Costs $29 so it’s not a huge investment but a good value for money.
You can get it on
Regards