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Have an Irregular Income? Get Financially Secure
There are some professions where the income is far from regular. This could include artists, freelancers and consultants.
While it is important to earn a steady income, if you work in one of these professions then you have to balance out the good months with the bad months. So, dealing with these fluctuations in income can prove daunting and frustrating. However, there are things that you can do to stabilise your finances regardless of having an irregular income.
Understand your Expenses
You need to begin by taking control of your expenses. This will provide you with a clear indication of how much you need each month. This is the capital that you need to maintain your lifestyle and not put a strain on your savings. Therefore, you will need to think about living expenses and lifestyle expenses.
Try to Identify an Income Pattern
You might have an understanding of when the quiet periods are and when you are likely to be busy. Take a look through your bank statements and try to identify a pattern of some sort and then look at your balance at the end of each month. You will see the good periods and also the bad periods. This will help you to allocate savings, ensuring that you have enough capital even when things are not going so well.
Consider Your Financial Foals
In the same way as your expenses, you will need to think about your financial goals What are your living goals? What are your emergency goals and even your personal goals? This can range from how much you need each month to survive, thinking about what cash you might need in case of an emergency and even what personal things in your life you will need to save for such as sending a child to university.
Don’t build up Credit
When the money dries up, it can be all too easy to turn to your credit card. While they are great for helping you deal with those tricky times, you will always be in debt. Therefore, if you don’t get paid on time then you could miss a credit card payment. This will result in a negative impact on your credit file.
So, you love your job and even the irregular income is not a problem for you but the main thing is to stay disciplined. Now that you have your expenses and financial goals laid out, you can work towards a financially stable future, which is crucial when you have an irregular income.