Budgeting – I cringe when I hear those words. I used to say “don’t know how to budget” so guess what, budgets never worked. The funny thing is as a grant writer, it was one of the things our funders loved about me. I was always on budget or under budget. Now, I am learning to apply it to my personal life……..
As a full-time direct seller, my income can be irregular. There are months when sales are AMAZING and there are months when sales are less than desired. I have always used the fact my income was irregular as an excuse not to stick to a budget. I mean the key to getting and staying out of debt is a budget, right? So I went on the hunt for some tips to help me (any maybe you) manage your money better when you don’t get a regular paycheck.
Budgets are easy on a fixed income but are a challenge when you aren’t 100% sure how much money you’ll bring in every month. Honestly, the budget challenge is the fear factor which kept me from working my business full-time. Not having faith in myself or in God to provide for my needs. I have monthly bills to pay – old credit card debt and school loans along with the monthly cell phone, cable bill and our grocery bill. Sounds basic enough, right? I mean how tough can it be? Here are some tips I found…
STEP 1: SET YOUR MINIMUM MONTHLY BUDGET
Your monthly bills stay the same, no matter what your income. The first step is to figure out what your income and expenses were on an average for the last three months. You have to know there the money goes every month to build a budget.
List the bills you pay every month like rent or mortgage; car, house, or medical insurance; groceries, gas, and utilities. Figure out the minimum number it would take to balance your bills.
STEP 2: SET EXCESS MONEY IN A SEPARATE ACCOUNT
Now you know the bare minimum amount you need to stay afloat each month. On pay day, pay the necessary bills first, pull out cash for groceries and gas to last the month, and put the rest into a separate account. Sounds easy right? The cash system (or envelope system) by Dave Ramsey is a great way to get started.
Building up a reserve of cash from your “feast” months, you’ll have funds to rely on during the “famine” months. I have set up separate savings accounts for my business and personal to “save” for those famine months. Transferring money “excess” amounts over or even a minimal amount every month allows me to save for those tough seasons.
STEP 3: DON’T GO CRAZY ON PAY DAY
It is going to be tough to not go crazy when you get a large paycheck, especially after a famine month. Resist the urge to spend. You won’t have money to set aside in your separate account for famine months if you spend excessively on unnecessary things. I’m not saying don’t enjoy a night out, just don’t make it a habit so your account drops to zero.
STEP 4: TRY TO LIVE WITH LESS
There are lots of ways to strip down spending to reduce your budget. We reduced our cell-phone bill, and cut got our cable bill. I negotiated a lower payment rate on outstanding school loans which reduced the monthly bill. I found when I went into saving mode, I wasn’t tempted to spend money on things I don’t need. Now, I am not putting out to the Universe “I can’t afford this” because negative thoughts bring negative actions. BUT what I am saying is “I have plenty of money in my accounts” to bring more positive into my Universe. When you save, you widen the gap between your minimum monthly budget and how much you have to use during your lean months.
STEP 5: BRING IN MORE INCOME
I know this sounds like a no-brainer, right? If no matter what your try, you are still having trouble paying the bills in your famine months, it’s time to bring in more income. Now for those of us in direct sales, it may be working our business a little harder or helping our team reach their goals.
Want something a little bit more concrete? You can pick up a side job to bring in extra income and pad your bank account for when you need to rely on your savings. Find a way to monetize your skills, gifts and talents to earn some extra income. Maybe it is being a freelance writer, or if you love graphic design, market your services to websites and bloggers. Maybe you are great at organization and secretarial skills, so become a part time virtual assistant for businesses and websites. Extra income will help during the famine months and it will help to make them go away faster.
Do you live on a feast or famine income? What is your advice to people struggling to make a budget?
Have a ThirtyOne-derful day!
Hope Wissel 