Part 7: How to Budget Based on Your Type of Income

In this video, you'll learn how to budget based on your type of income - regular paychecks or irregular changing income. Budgeting is important regardless of your income type, but it can be more challenging when your income is irregular. For those with regular paychecks, budgeting is relatively straightforward. Determine your monthly income after taxes and subtract your fixed monthly expenses, then determine how much money you want to put towards savings and any variable expenses. It's important to stick to your budget and adjust it as needed.

On the other hand, if you have an irregular or changing income, creating a budget can be a bit more complicated. Start by determining your minimum monthly income and create a budget that accounts for your fixed expenses as well as any savings and variable expenses. It's important to be conservative with your income estimate and prioritize your expenses. Creating a buffer fund can also help you cover your expenses during months when your income is lower than expected. Additionally, using budgeting tools and being flexible are important to effectively manage your money. By following these tips, you'll be better prepared to handle the ups and downs of an irregular or changing income.