Budgeting with contract work

[zgma]

Another budget question from me: My husband's work is all on a contract basis, and it's very irregular. Sometimes he has too much, sometimes they don't call for months at a time. Over the past couple of years, it seems like it's been about the same amount per year, but we never know when the money is going to come in, and there's no guarantee that it will. We are trying to make a monthly budget since money is very tight right now, and we have to parcel everything out. Any suggestions for how to create a workable monthly budget with some of the income being unreliable? (I am salaried so have exactly the same income every month).

[MrsCheeks]

Best way is to budget using YOUR income for the major outgoings such as mortgage, bills & food etc. Anything your husband earns is then a bonus and can be used accordingly - such as extra mortgage payments, clearing off balances on bills, a night on the tiles to help you unwind. Hugs, xxxx

[Sylday]

Yours is a situation where cautious use of a credit card might be beneficial. So long as you limit your total spend per month (cash etc + card) to a twelfth of what you reasonably expect to make over the whole year, your debt should be manageable. But remember to take account of the interest charges, and of your husband's tax liabilities. On the other hand, if your husband's contract income just doesn't materialise, perhaps he should start looking for another job.

[budgetquincy]

Making a budget is one of the most important things you can do for your personal finances. When we finally sit down to create a budget it is hard to know how to make a good budget. Searching online proves that there are lots of ways to create a monthly budget. There are tons of free sample budget templates, tips for budgeting, and other budget advice. However, when creating a budget, the most important thing is that our personal monthly budget fits into our lifestyle. Finding a great free monthly budget template and then customizing it to take care of our own personal finances is a great way to get a budget that works for us and our family.
The best budget advice I ever received was, “Make a budget that you feel constrains you and gives you freedom at the same time.” What this means is that our monthly budget should test our ability to spend less, and not need everything we see or want. At the same time, it should create opportunities for us to save up for and buy things that we want. We just have to have a little more patience when we start to change our habits like this.
Here is how to create a good monthly budget. First, determine how much you are currently spending and what you are spending that money on every month. This can be a simple list typed or written. Then look at how much you make each month from your job and other sources. If you are typically spending more than you are making, then the answer is obvious that it is time to start cutting expenses. Even if you aren’t spending more than you are making, you should ask yourself, “Are the things I am spending money on monthly worth more to me than something else?” I often find that I would rather spend my money elsewhere, but that I end up spending it in the same few places based on spending habits, addictions, or things that I feel pressured into buying.
Turn that spending from buying things you think are making you happy into things that actually make you happy. Running through this simple exercise is important because it will help you learn how to budget your money in a way that will buy you more happiness instead of making you feel trapped like some budget suggestions make you feel. Media URL: http://www.budgetwithquincy.com/
Description: