Irregular income budgeting?!?!?

LibbyL123 · November 2015

My payer has changed.... I now get 30% of my income paid by the state which can be held up 4-8 weeks or more and isn't as predictable as before. I have $1200 that's hasn't been paid since May due to errors.

So I know how much I send bills out for and 70% I know when it's coming. How do I make a zero based budget when it may come 6 weeks+ later?? Do I save for the following month after it actually comes and just budget for what I know is coming.

Ideas on how to deal with this change? I am fee for service So I know how much I will get just not when that will be.....

Xstatic3333 · November 2015

I don't use this program myself, but in your situation I might look into the You Need A Budget app. This app works by having you create a budget and live on last month's income. I think some people around here likely use it and could tell you more.

The other approach you could do is just make a budget based on the 70% and then when the 30% comes in have a "priority list" of what you will do with it. For example, if your big goal right now is saving an e-fund, bills and expenses come out of the 70% and then the 30% goes to the e-fund when it arrives.

BlueBirdMB · November 2015

I own a business. My income is never exactly the same month to month. I need to always have extra cash on hand in case I have a bad month and ultimately, I have to live more conservatively.

Erikan73 · November 2015

I would set up a budget for daily expenses based on the 70% you know is coming & when if possible. Then use the 30% to boost up savings, emergency fund, retirement, or to pay extra on bills like mortgage or any other loans/debts you may have.

dragonstarjk · November 2015

Ditto what pps said. Make your regular living budget based off the 70%, and then when the other 30% comes in apply it to goals that don't necessarily have to be paid at regular intervals, such as e-fund, savings, extra debt payment, etc.

julieanne912 · November 2015

Yup, agreed w/ the others. Both H and I are at salary jobs (well mine's hourly but I always have at least 40 hours), but we get bonuses as well, and I get OT sometimes. My bonuses are monthly, and vary depending on time of year, and his are quarterly and are based off billable hours. We do our zero based budgets (we have separate ones) based on our salaries/40 hour paycheck only. The bonuses go towards beefing up savings for me, or for him, extra debt payment.

Irregular income budgeting?!?!?

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