With people increasingly using technology to make money from home, it is becoming more common for many of us to live on a variable income. The problem for many, though, is how to create a budget for variable income? Whether you have a stable base of income, with some variable elements, or whether your entire income is variable, you need to have some sort of plan for your money.
This guest post is from Wifey of a Roadie, where M shares her tips and tricks as she and her husband travel the world.
Hi Everyone! Wifey of a Roadie here!
I’m reading all these informative and entertaining blogs on debt control and travel and therefore have been inspired to write this post.
Juggling Love and Careers
Some people have asked how in the world my husband and I have managed to stay together and travel so much. When my husband got offered his first job to tour with Queen Latifah, he was told to ask my permission to accept because marriages don’t last in this business.
For those of us with kids, we hope to pass down certain traits—good looks, agility, perfect vision, smarts, business savvy. But what of our money management skills? Financial finesse rarely makes it onto our list of personal strengths, yet it’s a crucial life skill everyone needs to acquire. A Charles Schwab 2010 Families and Money survey found that “not saving early enough for retirement (43%), not saving money for emergencies (42%) and carrying credit card debt from month to month (30%) [were] cited as the top three financial mistakes [parents] fear their kids will repeat.” Don’t let your kids make your same mistakes or fall into that ever-growing percentage of 18-24 year-olds who file for bankruptcy.
Here are 4 simple things to do differently (or start doing) as a parent, to ensure your kids gain financial awareness from an early age and build responsible habits.
There’s been a movement the past couple of years to move to a smaller home in order to save money. It’s understandable with the economy the way it is and all. Still, many people look to the time when they can get a bigger home. Sometimes you just need more space. Some just want the bigger place. I still see homes being torn down and re-built into much larger houses. Thing is, when you buy a bigger house you aren’t just paying a bigger mortgage. With a bigger house comes some other expenses and costs that increase.
Some Ways You Will Pay More With a Bigger House:
Have you drawn up a detailed budget and are struggling to keep to it? According to an article in the NYT*, it would be best to just give it up. Well, not exactly. But it does say that keeping to a strict budget might not be the best way to go about spending less or saving your money. The money and pyschology experts they interview say that a budget can be like a diet — it doesn’t often last long and may just end up with you standing at the freezer late at night devouring a quart of ice cream right out of the container.
It’s human nature, they say. We generally have trouble following through with our “best-laid plans.” And after a long period of focusing on restrictions — we binge. Compounding the problem is the abstract nature of credit cards and such. Watching cold, hard cash dwindle is far more painful and thus more effective in reigning in our spending.
You try to do the right thing. You create a financial plan and set up a budget to follow in your home budget software or budgeting spreadsheet. But it seems your budget still gets busted and it bugs the heck out of you! What keeps messing up your calculations?!? I’ll tell you what screws up your budget: L I F E.
I think most people want to eat healthy.
But for many it’s too tough to start (especially eating healthy on a budget). We get into eating habits, that aren’t great, and its just too much to give them up and change our lifestyles.
So what do we do? We don’t bother; it’s too hard.
Does this help a person?
Nope. Does this sound like anything else we don’t take care of because its too hard? Yup, personal finance! So what’s the answer to eating healthy? Just like your personal finances, you can start with baby steps and move from there. Make small changes to your habits, little by little, and build up over time.