Budgeting With an Irregular Income: Nine Key Strategies
Irregular Income This is the income that we may receive from time to time and can include things such as Bonuses and commission, dividend payments, lottery wins and interest on savings. ... Examples of this type of income could include a company car, free meals, hotel stays, etc.
Here is one way to budget your variable income.
Irregular income. Regular income is your fixed earnings, like salary and allowance, that you receive on a regular basis. Irregular income is your occasional earnings, like eBay sales or bonus payments.
Irregular income
If you've had the same source of income for a while, a good way to determine an average is to add up your income from the last 12 months, then divide the result by 12.
For example, income is a variable that can be recorded on an ordinal or a ratio scale: At an ordinal level, you could create 5 income groupings and code the incomes that fall within them from 1–5. At a ratio level, you would record exact numbers for income.
Fortunately, taking the surprise out of irregular expenses is fairly simple. You just have to identify your irregular expenses, total their cost, and divide that total by 12 to turn them into a single monthly bill that you can include in your budget.
Most experts recommend saving at least 20% of your income each month. That is based on the 50-30-20 budgeting method which suggests that you spend 50% of your income on essentials, save 20%, and leave 30% of your income for discretionary purchases.
These are important items of expenditure that involve the same amount of money being spent on a regular basis (weekly,ly monthly or annually). ... Examples of irregular expenditure are: > Groceries > Clothing > Motor fuel > Light and heat > Waste/recycling charges > Telephone bills > Education costs > Repairs.
Legal Definition of regular income
: income (as wages or pension benefits) that is received at fixed or uniform intervals.
10 Cards in this Set
| Which is NOT a money management skill discussed in the reading material? | Managing your time in a healthy manner |
|---|---|
| What are some typical expenses for a person just starting out in a rental apartment? | Rent, renters insurance, transportation costs |
Yet No Comments