How Do We Budget On An Irregular Income?

Gabrielle and her husband have an irregular income flow so she asks Dave the best way to budget and plan when they aren't sure what they will be bringing in every month.

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[yayyareaa]

I just set the worst case scenario every month.
Works for me

[VampireKan]

The best way to do this, and what I do, is to live off of last month's money. The trick is that you have to actually HAVE that money available, so if you're struggling and living paycheck to paycheck you might not be able to start doing it this way.

I take whatever I made the previous month, and take anything past that amount (plus enough to cover credit card bills) out of my checking and put it somewhere else. Then I make my budget from that money and that is the money I use. For example, if I make 3k this month, I put that amount into my checking and make that my budget. Anything made in the current month doesn't get used or touched until the new month starts.

This works perfectly, and you never need to do any guesswork or wonder how much you're going to make when you do your budget, because it doesn't really matter.

[jasonmarcil]

I just assume the lowest possible amount of income I expect to make each month and base my budget on that. Anything extra that comes in is just an added bonus at the end of each month that I contribute to my savings or investment accounts.

[Bmayo]

3:32 - Dave’s laffy-taffy is kicking in!!

[ryandelsignore]

4:21 thank you for that. Felt like you were coming at me with that. I needed it.

[BEARBAER]

Needed this, as a missionary it’s super hard great video!

[mkdaddy]

The Every Dollar App isn't available in Australia, is there something similar you would recommend ?

[yamamancha]

Fixed expenses don't change that much. Food, insurance, mortgage/rent, utilities, gas, communications, etc. I set the reasonable minimum amounts for these and set that total as our minimum budget. At the beginning of each month I wipe that $$$ off the books, set aside $300 as petty cash, and use the rest to fund Baby Steps 4 through 7 as well as various mini-emergency funds.

[t]

Well, my lowest possible income are 50€ depending on whether I get a commissioning. How can I set a budget when there are months without significant income?

[leticiaferreira]

Excellent video and excellent missionary. Congratulations on the words.

[Davez]

Unfortunately i don't have a cushion and whenever i make some money I have no choice but to spend it immediately on necessary bills each week. Does any one have any tips on this?

[nicmac]

This app isnt in the Uk. What should i use?

[Kpshawtii]

I’m a hairstylist and my monthly income is normally a little over 3, 000 a good month it’s 4, 000. I’ll be downloading this app! And if anyone has any other recommendations please help! lol

[mikekeenanphd]

I would think that if you had the 3 to 6 month expenses in savings that this wouldn't be an issue. Isn't that one of the steps?

[dietdrpepperaddict]

And when you make less? 🙄 He shoukd have said when you get more above budget, you save it for when you’re below budget.

[blackdahliastudios]

"World's best budgeting app."

It's like the Ben Shapiro show.

[amandalamoureux]

Excuse my Thank You. 🙄 sales orders I'm moving a lot of shit around to make everyone comfortable I will not b needed without transportation coverage.

[lizziemartin]

Why does he never tell people to buy all their detergent, soap, shampoo, etc in The Dollar Tree ? Try doing that and you’ll save a lot!

[TheOverlord]

I wonder what are Mr. Ramsey's thoughts and opinion on YNAB.

[nasreenashfaq]

I wish to learn and understand to earn more