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Tuesday, January 9, 2007

Planning your budget on a variable income.

To make a budget on a variable income, you should plan your budget according to the lowest monthly salary that you have received. For instance, if you usually make $3,000 a month, but every now and then you only make $2,500 a month, you should always make your budget for the 2500 month just so that you don't overplan your expenses for the month. If you do make your usual $3,000 a month, then you should sit down with your spouse and decide what you want to do with this money. You could take this money and continue building your emergency fund (see the Baby steps on the right side), get out of debt, or invest. Put this extra money in your budget for the next month. You need to make sure that you use this money wisely and you don't just blow it on some random junk.

2 comments:

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