Many people have irregular incomes - farmers, construction workers, substitute teachers, and any sales person on commission. What they all have in common is that none of them can predict just when that income will come in and how much it will be. But they all know when the bills come due.       

 

Having an irregular income increases the need for having a plan for both income and expenses.

 

When planning, always under-estimate income and over-estimate expenses. Keep careful records. Everyone in an irregular income household needs to get into the habit of keeping track of where the money for which they are responsible goes. Review these records and adjust spending plans accordingly.

 

Buy extras from accumulated funds, not from current income. Irregular income households also have a greater need for an emergency fund to cover emergencies and irregular expenses.

 

Set aside income for unexpected lean times. Having a contingency fund for providing income when it can’t be made is good common sense.

 

Keep household funds in an account separate from the business account. Write checks for as many expenses as possible to simplify record keeping. Schedule irregular expenses for months when income is expected.