How to Create a Super-Awesome Life Plan on a Variable Income | Guiding You Forward
When you think about what types of workers live on a variable income, the first thing that comes to mind is probably seasonal workers like landscapers, ski resort employees and pool cleaners. But there are so many more that you may not have thought about—like food servers, teachers, ride share drivers and anyone who works on commission or gets a bonus.
That covers a lot of workers!
Many people who earn a variable income have a difficult time budgeting successfully. That’s why we’re talking with Scott Sherman, financial education manager at Mountain America Credit Union, in the podcast lounge.
Watch the video and learn:
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A new perspective on budgeting that can make it easier to succeed.
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The challenges of budgeting on a variable income.
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How to use buffer and bonus accounts to even out your paycheck.
The mere mention of the word “budgeting” can send people into a frenzy. What many people hear is “restrictions.” But it doesn’t have to be that way. It all comes down to having a new perspective on budgeting and what it can do for you—Scott calls it a super-awesome life plan.
Living on a variable income can be tricky. If you don’t follow a plan, you could end up just paying the bills and expenses as they come in—which could lead to spending next month’s money this month. And that could, in turn, lead to more stress as you contemplate how you’re going to cover those bills when they arrive.
Scott outlines some of the challenges of managing a variable income and offers several tips to make it work for you.
The goal to budgeting with a variable income is to set up your financial accounts so that you can, essentially, pay yourself a steady paycheck at a regular interval. That way, you’ll know what’s coming in and you’ll have a plan outlining how to use it.
That’s where the buffer and bonus accounts come in. If you have a variable income, these are your superpowers! Scott illustrates how these accounts work together to ensure you don’t run out of income during the slow times.
Watch the full video above to get all the tips for living successfully on a variable income.
