Steps of planning a budget for people without regular income

If you are here, it means you are moving in the right direction. No matter what exactly your occupation is and why there is no regular profit generated by your work, it is a very sensible approach to start planning your budget right now. This article will give you a lot of crucial tips on the particular steps which should be taken in order to make your life easier and financially secure even if you do not receive your income every month.

Understand your basic expenses

The every first thing you should understand is the amount of money you are spending on all of the necessities. As you can imagine, the list should certainly include the money paid for the place you are living whether you are renting a flat or you are paying money loan interests. In addition to it, take into consideration the money you are paying for electricity, gas, Internet services, mobile operators services, transport and food. Keep some spare some on money for medicines as you never know when it is needed.

Undeniably, this list can be extended by other things such as university fees or necessary payments you are making for other members of your family, especially if you have children.

Estimate the amount of money for a more comfortable life

Once you get a picture of your most basic expenses, it is time to move to another level which is a moderate comfortable life. This level of money spending will include the things which are bringing joy into your life albeit you can live with them. For instance, you can add to this sum the money you will need for going out at least once a month, some of the more expensive products you prefer as well as other things you love which are not necessary for basic existence.

From this level, you can move to the estimation of the sum which is required for the life without any limits when you can afford anything you want. Still, keep this amount of money inside some sensible boundaries.

Estimate your income

This is the most complicated part of financial planning in the case of people who do not have any stable income. Still, in many cases it is possible to make some basic conclusions especially if you have already had some experience in working in such a way and also have some clients with whom you are working all the time or may be even have long-term projects. By the way, it is crucial to include your own level of energy into this planning as for the occupations in which there is no boss keeping an eye on you, a lot depends on your own discipline. Definitely, if for some reasons you do not even physically feel like working, you can easily notice how it can decrease your profit.

In order to get a better understanding of your future, get an approximation of the minimum amount of money you can get if everything goes wrong and you will hardly have any opportunities to work.

Then, move to the average income you are getting when you are working at your regular pace.

Finally, you should look at the possibilities for extending your income, for example, if you yourself will be more enthusiastic about your work and ready to work harder or you get better possibilities for cooperation with your clients. Even though this amount of income would never be taken into consideration as the sum on which you can count and use as a basis for your financial plan, this is still a great way to understand opportunities for your personal promotion. This is particularly crucial for freelancers and small businessmen who cannot count on anyone else giving them promotion at work.