Personal Budget Plan

Irregular Income? Here are the Ways to Create a Personal Budget Plan

Personal Budget Plan: Many Americans, especially frontline employees, face unpredictable job schedules and erratic wages as companies continue to lay off or furlough staff in the midst of more economic closures. With a shifting paycheck, being able to handle cash and budget is a valuable skill to have.

Personal Budget Plan: How to spend money wisely?

Knowing how to budget for a shifting paycheck will help make handling money a little less stressful during a pandemic-induced recession if your income is unstable and erratic.

Watch the limits of your credit card and interest rates

Credit cards can be used as a way to cross the difference between when bills are due and payday if you’re careful. You must be very cautious, however, not to begin overspending on your card. When sticking to your bare-bones spending plan, this means understanding your credit cap, your minimum balance, due date, and your interest rate. Credit, when used wisely, can be helpful when money is tight.

Scheduling credit card purchases into your budget is the secret to keeping yourself out of credit card debt. Do not spend more than you know you can afford, and as soon as your income comes, try to pay your bill off in full. Loading up debt on a high-interest rate credit card is something you absolutely want to avoid.

First Create a Buffer

Once you know what you need to get by and have a strategy on what you will do in a temporary cash pinch, giving yourself a buffer is the next best step.

The secret to a good irregular income budget is getting money set aside. That way, if a freelance client pays late or you haven’t been able to pick up as many side gigs, as usual, you won’t have to rely on borrowing to get by. Aiming to get stashed away in savings for at least a month.

Also Read : The Best Business Loan Options for Freelancers 

Regularly revisit the expenditure

The biggest aspect of setting up a budget is being flexible for a shifting paycheck. Although standard budgets focus on setting a target and reaching it each month, to comply with your changing job situation, budgets made for irregular incomes need to be reviewed and adjusted throughout the year. Ideally, the costs should stay the same but reassess what you should pay, where you’re falling short, and change accordingly if you have budget surpluses or deficits week-to-week.

Establish a budget that is bare-bones

Figuring out what you absolutely need to get by is the first step to making a budget with a shifting paycheck. A bare-bones budget is a budget that cuts your expenses down to just what you need to survive: food, housing, cheap internet connections, average monthly car payments, required insurance, and debt management. A bare-bones budget sometimes called an ’emergency budget’ or a ‘crisis budget’ Without any of the extras like it is a minimalist, essentials-only budget.

Without being entirely impractical, an important element in a bare-bones budget is to be frugal. For example, you’re not going to automatically become a meal prepper if you’ve never cooked before. But even if it’s takeout, you can shop smart and set a fixed monthly spending cap on food.

Personal Budget Plan

Know your other capital options

If you have depleted savings and don’t feel comfortable spending on your credit card, it’s worth it to have a few other options to easily access funds and be conscious of ways to pay off debt creatively:

Personal Loan Credit

A personal loan is an amount of money that can be used for some purpose, such as personal home improvement loans or a car loan, and that is paid back over a specified period of time in daily, fixed monthly installments. Since you’re going to pay interest on the whole amount borrowed, just apply for what you really need to get by. And make sure that you can pay the full sum due each month on time. For personal loans, compound interest rates can be up to half that of credit cards.

Also read: Personal Loan: Eligibility And Ultimate Guide Before You Apply

Home equity line of credit

You can qualify for a home equity line of credit, or HELOC, if you’re a homeowner. HELOCs also have broad credit caps and low-interest rates, but the downside is that you risk signing over your house if you are unable to repay the loan.

Track your expenses

You will have to rely more on yourself when you don’t have a steady paycheck to rely on. You might not be able to shrug it off by reminding yourself that you can just skimp until next Friday if you overspend.

Throughout the month, keep track of your expenses. You may use budgeting software or create your own erratic budget spreadsheet for revenue. The correct option is whatever approach you know you’ll stick to.

Check on emergency savings

Dipping into an emergency savings account during times of erratic income may be a lifesaver. Knowing what’s available and how much you feel comfortable clicking will help you compensate for any income shortages or fluctuations.

Also, note to keep track of any provisions for minimum sums in savings or checking accounts. Contact your bank to ask if they can waive those fees if you intend to draw down your emergency savings to a value below the minimum that the account requires. Better still, transfer to a bank that does not demand minimum account balances or charge excessive fees.


With a shifting paycheck, managing money and working out the budget is not always a walk in the park, but it can be done. In successfully handling this, making a roadmap and revisiting it periodically would be two of your greatest allies.

There you have it! A guide to a perfect personal budget plan!

Holiday Spending Mistakes to Avoid This Season

Holiday Spending Mistakes to Avoid This Season

This year, we allow more and more individuals to make numerous choices that will still guarantee a great celebration of the holiday, without paying for it over the next 5+ years. You’ll be able to usher in the new year with more cash by budgeting and being mindful of spending, and in a better place to get out of the cumbersome holiday debt that might have accrued over the years.

Hit the shopping centers alone.

People really enjoy investing the money of other people. The extra temptation to get that little extra item that “looks fabulous on you or “hey, this is what you really need” is fuelled by shopping with friends. Shopping with partners-in-crime will push you off your budget. So, remember the season’s importance, stick to your list, remain focused on the season’s intent, and keep your cash budget in check.

Start a Secret Santa charity tradition.

The bigger the family, the more tension can be generated for everybody at this time of year. Instead of drawing numbers and giving each other gifts, select a charity where you all pitch in to support those in need. Enjoy the holiday spirit, go and decorate trees, or spend time supporting others as a family. If you would like to take things a step further, forbid each other from giving gifts to each other so that nobody feels left out.

Make a “toy list”

Children are fond of toys, and more is always better. We know toys lose their charm easily, too. So by putting a financial cap on toys, keep the season’s spirit and enthusiasm alive. Have your kids make Santa’s list, and let them know that Santa has too many kids to get presents for, that they’re going to get one toy out of the list. Setting goals early on will later lead to fewer disappointments.

Ditch the flashy for meaningful.

We all know the saying that it’s the little things that count. We take those things for granted sometimes and put too much pressure on ourselves to deliver the ideal gift. Or if we’re not giving anyone exactly what they want, we feel guilty. What about what somebody wants, though? Those little things are not “things actually, but acts that you can take to make life a little easier for a loved one. Give the “help” gift or make something that you know the person would enjoy. Gifts that benefited them or one of a kind gifts that made them feel special that you took the time to make would remember people you love.

Just love yourself. On your gift-giving list, put your name.

It sounds counterintuitive, but you have to secure your mask and give yourself some oxygen before attempting to rescue the people around you as they say on airplanes. It stops us from making impulse decisions when we feel good and holds the personal balance sheet in place. And you’re worth it too!

For gift-giving, make a core list.

Giving and seeing people’s faces brighten up with smiles is fun; stick to your core friends and family, however. Write down a list of people for whom you would like to purchase a present, then consider who’s on your list objectively, and trim it. Start with your close friends and immediate family, and selectively exclude people who are not in your inner circle. Don’t worry, we have some tips below for people who didn’t make the final list, as to how you can still give them something special for the holidays.

Also Read : What is Best for you: Personal Loan Or Credit Cards?

Choose a number, evaluate your budget, and stick to it.

We forget about little things. During the holiday season, it is all the little stuff that seems to get missed that can make our bank account overdrawn. Budget everything from Christmas card postage to favors for holiday parties and home decorations, to a pet-expense sitter’s if you’re traveling.

Sales Sales Sales.

It’s a no-brainer. Do not buy it if it isn’t on sale. Deep discounts are popular for the holidays. It seems that sales start every year earlier and earlier, so if you prepare ahead, you might be able to pick up famous products on sale early in the season as opposed to risking losing out due to demand. Collect coupons and points throughout the year so that products that might not be discounted due to popularity will save as much as possible. Try not to pay the full price for something, no matter what you do.

Make it a potluck Christmas dinner

We all love to get people out for the holidays, but it can be expensive to buy a full dinner for a house full of friends and family. Embrace the practice of assigning a dish to each. To let everyone know what they are supposed to bring, send out an email, and let the celebrations happen stress-free.

Commit to cash spending only.

A sure way to keep your finances in check is to part with cold hard moolah. When it is in your possession, it is hard to invest it. So after you’ve selected your holiday budget, take out the cash, put it in a safe location, and then commit to spending just the amount allocated.

Ditch the holiday and go on vacation

Many individuals have time off work and children usually have time off from school, so the holidays are the ideal time to get away and pursue a new adventure. For cruises and resorts, the holidays seem not to be as busy. They have fixed costs and they need to fill rooms, so by investing in a fast all-inclusive holiday break, you will get much more than you bargained for and really enjoy your time with your friends and family versus worrying about it. Do your homework, negotiate fair deals, and leave behind the burden of your vacation routine.

Say no to credit cards.

Plastic is costly. As you don’t notice the effect at the moment, it seems like the easiest way to manage holiday obligations. But in January and throughout the year you’ll feel it. Think of how far ahead you’re going to be with your budget objectives if you don’t pay off holiday debt as well. Avoid the urge to use your credit cards, and you’ll be pleased with your decision when the holidays are over.

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