How do you budget on a variable income?

WantToBeSE

I am not sure if DFW is the best place to post this question, but i am sure the mods will move it is needed.

I am trying to work out the best way to budget when i have a variable income.

Some months i only earn £400 a month, other months i earn £800. I am self-employed.

How would you work out a monthly budget in this situation? It can't be as hard as i am thinking, but i feel like i have thought of so many options that its like i am a dog chasing it's own tail!

Any advice? My monthly outgoings every month (all household stuff, billss, food etc, but NOT including petrol) are £380.

matttye

Put whatever you don't use in an £800 month into an instant access savings account and dip into it in one of your £400 months.

WantToBeSE

I am not quite sure where i am going wrong. Thats exactly what i thought to do, but i seem to never have enough money left over on either month

R_P_W

Make a budget on the lower end of your income.

If that doesn't stretch far enough you either need to earn more or spend less.

matttye

WantToBeSE wrote: »

I am not quite sure where i am going wrong. Thats exactly what i thought to do, but i seem to never have enough money left over on either month

Do a Statement of affairs (you don't have to post it if you don't want). Be honest, be brutal.

Then write down everything you spend money on throughout the month. If any of your variable amount bills are higher or lower than what's written in your SoA, write down the extra/decreased amounts as well. If you have a smartphone there are apps to do this, which might be easier/more convenient than carrying a notepad and pen everywhere.

Often it's those little things that add up over the month. I worked out I spend about £10 on chewing gum each month! :rotfl:

WantToBeSE

Thanks for the advice

If i earn more, then i end up paying more than i earn in childcare, so it effectively makes me worse off. I cannot spend any less, as it's a tight enough budget as it is.

I think i am just going to have to make sure that i actually stick to my budget instead of going off plan.

matttye

WantToBeSE wrote: »

Thanks for the advice

If i earn more, then i end up paying more than i earn in childcare, so it effectively makes me worse off. I cannot spend any less, as it's a tight enough budget as it is.

I think i am just going to have to make sure that i actually stick to my budget instead of going off plan.

You didn't tell us about that little chestnut in the OP. Yes going off budget is almost certainly the problem!

WantToBeSE

matttye wrote: »

You didn't tell us about that little chestnut in the OP. Yes going off budget is almost certainly the problem!

Ahh, to be honest i dont think i had really seen it as a real problem until i was forced to type it out
operation 'Stick to budget' starts from TODAY!