Budgeting During Uncertain Times

The economy has been on an uncertain path lately. More and more people earn income that varies each month due to fluctuating work hours or multiple part-time jobs, making budgeting a difficult task. Still, you can start the new year off right by improving your money management skills, even when your monthly income is uncertain.

Add up your fixed expenses.

Include food, mortgage, or rent, utilities, transportation, and health insurance. The total is the minimum amount you need to earn each month to live on.

Save extra cash.

Set aside any money that is over the basic amount you need to live on in a savings account. If you won’t need the money for several months, consider putting it in a money market account, which typically earns a higher rate of interest than a savings account.

Look ahead.

If you discover you won’t have enough income in the near future, look for ways to get ahead of the shortfall. Picking up extra hours at a part-time job or volunteering for overtime may put you in a better place financially.

Avoid overspending.

It might be tempting to spend more in the months when you have extra cash but doing so could put you right back in deficit territory. It’s okay to treat yourself within limits but put the bulk of your money into your savings account.

Start a side hustle.

Turning a hobby into a business can bring in extra income. Apply to sell your items at flea markets and craft fairs held at local schools or churches. Or get together with friends and hold a sale in your home.