Budgeting for Irregular Income


Image of piggy bank.Understanding how to manage the ups and downs of irregular income is a challenge for many new real estate agents (and can even plague some of the veterans during a downturn!). Boom or bust, you need to build up some skills to manage the erratic nature of real estate income.

J.D. Roth, author of “Get Rich Slowly” and “Your Money: The Missing Manual,” recently put together¬†a very wise article¬†for the Behance magazine 99U. We encourage you to spend the time to read and share his advice with others.

Some highlight topics he covers in depth:

  • Establish a foundation of thrift.
  • Prioritize spending.
  • Build a buffer of savings.
  • Tap your business account only as needed.
  • Resist lifestyle inflation (especially during the good months).
  • If possible, live off just one income.

Also, he explains this relatively simple system:

“I base my budget on my lowest monthly income from the previous year. When money comes in, it sits in a bank account. Each month, I write myself a paycheck based on my budgeted amount. The rest of the money is saved to pay taxes. If there’s any left over at the end of the year, I get a bonus.”

Check out J.D. Roth’s full article here:
http://99u.com/articles/6486/how-to-budget-for-an-irregular-income

Tags: ,

Please support the partners who make Tuesday Tactics possible:

advert

Comments are closed.