It is usual to read that you should make a budget to control your personal finances.
That sounds great but what happen if I have an irregular income, how will project my expenses and inversions?
Well Get Rich Slowly, one of my best blogs about personal finances, give us some advices.
His author summarize two methods for making a budget when revenues are variable.
1. The average method. This method consists of making an average of our income for the last 12 or 6 months. That average number will be my estimate income in order to make my budget and find the balance with my expenses.
The problem with this method, as the author said, is that if one month I have zero income this method could be a nightmare. If I do not have enough savings will not balance my expenses.
2. The method of the lowest income. In this case is not an average but it takes the lowest income I’ve had the past 6 or 12 months.
This method is much more conservative and more secure.
You can read the full article with graphics and more on GetRichSlowly by clicking here in this link
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