Inconsistent Income

Some people dodge budgeting and make their inconsistent income a handy excuse. Understandably, it can be quite difficult to manage an income that varies from month to month. Those who depend on commission, sales from a business and freelance often come face-to-face with this financial conundrum. But that all doesn’t mean that you shouldn’t bother with a budget. In fact, an inconsistent income should make budgeting an even more important activity.

Work with a Bare Bones Budget

One of the best ways to ensure you can cover all the necessities is to work with a bare bones budget. In this type of budget, you prioritize all the basic expenses like rent/mortgage, health, education, food and utilities. The extras (or luxuries) like a gym membership, cable and shopping will take the backseat. In case of very lean months, you don’t have to worry about your needs. When your income exceeds the budget, you can spend the money guilt-free to your extras.

Consider a Zero-Sum Budget

A zero sum budget assigns an expense for every dollar so that at the end of each month, you would have used every dollar in your income as intended. Basically, you will have this equation: Income – expenses – savings = zero. This means that you cover all expenses and allocate funds to your savings. Every dollar has its job and you can rest easy knowing everything has been budgeted for.

Establish an Emergency Fund

An emergency can take place whether you have high and low income and the best way to cushion your savings is to have an emergency fund. This will be the catchall fund for all types of emergencies, whether you need a new computer, do home repairs or pay an urgent unexpected bill.

Use Personal Loans

You have a very fragile financial situation when you happen to have an emergency at a moment when you have low income and you don’t have an emergency fund. One of the best ways to address this situation is to get personal loans.

Don’t worry if you have poor credit score because you can apply for personal loans for people with bad credit. You can use personal loans to address a financial emergency and any other expense which you need additional funds for.

If you can’t get personal loans from your bank, your next best bet would be third party lenders. A lot of online lenders provide personal loans for people with bad credit even without collateral and credit check. You also just have to submit a few documents in order to begin the application process.

Personal Loans for People with Bad Credit Online

There are several reasons why you should take personal loans for people with bad credit from third party lenders. First, personal loans offered by third party lenders do not require good credit score. If you cannot qualify for regular personal loans offered by banks because of your poor credit rating, online personal loans could be a good option for you.

Second, online personal loans are fast cash loans usually released within 24 hours. If you are trapped for cash, need extra money urgently and don’t want to go through the long and tedious bank loan application process, online personal loans offer a more convenient solution for your needs.

Third, these loans are small and short-term loans, perfect for small and temporary financial needs that pop up in between paydays.

Having an inconsistent income does put you in a rather unpredictable situation, but you can still manage unexpected expenses by working with a great budget, having an emergency fund and accessing personal loans when required.