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How can I do my budget when monthly income varies?

(13 Posts)
VeryStressedMum Wed 12-Feb-14 19:20:13

DH is a consultant and what he gets per month varies depending on what he has done in that particular month. Also his expenses vary from month to month so I don't know exactly what is there to start with then what is left.

He would have an amount that if he did the bare minimum he would get so should I do the budget based on that amount? I really want to do a budget as we don't seem to have any!

Thanks

JadedAngel Wed 12-Feb-14 19:36:31

Message withdrawn at poster's request.

VeryStressedMum Wed 12-Feb-14 20:09:13

I think I'll have to do the same, although it's hard to budget accurately because of the expenses.
I think I'll have to open another bank account to put savings in (assuming we have any money to save) as the money seems to be all over the place.

I just don't know where to start...I really need to do one of those budget sheets but I think I'll find we're so skint because of me!

bigbadbarry Wed 12-Feb-14 20:14:41

I think I would budget for the absolute minimum and essentials, then any extra income can go on non-essentials (which might still be quite important). Iyswim.

Minionionionion Wed 12-Feb-14 20:18:54

My wages vary and we have a spreadsheet that we have made that calculates everything on a percentage, the minimum we need is always covered and the % means any extra is divided fairly, I just apply a transfer to each account/payee every pay day.

Not sure if that's helpful smile

TodaysAGoodDay Wed 12-Feb-14 20:23:18

You need a budget when he's a consultant? hmm Doesn't he earn shed loads to begin with? Consultants for the NHS are on a basic salary of £75 000, and you need help to budget?

Suzietwo Wed 12-Feb-14 20:30:28

I deal with it by borrowing from my tax savings account to provide stability. It all washes out in the end but I'd prefer to have a decent sum saved aside from the tax.

LydiaCrawford Wed 12-Feb-14 20:45:55

I presume that the OP's is a self-employed specialist (e.g. in business/IT/finance/construction etc) that businesses pay to consult rather than a salaried hospital consultant.

TalkinPeace Wed 12-Feb-14 21:19:59

on my spreadsheets thread on this board is a budgeting spreadsheet that adds across the weekly items to give a year to date running total ....
DH and I are both erratically self employed so I understand your dilemma

mirtzapine Thu 13-Feb-14 12:41:51

Adjust it week on week, a mistake people make with budgets is assuming that its fixed costs over the year. The way I work it, is I have a minimum and maximum weekly spend. The maximum is based on heavy spend weeks month end when bills need paying.

If your a contractor consultant with a gappy work year eg six month contract, month gap, three month contract, two month gap etc... project forwards a minimum weekly income, based on a 53 week year (a year can be more or less than 52 weeks depending on jan 1st, dec 31st and leap days). If your minimum weekly income is greater than your maximum weekly expenditure, good. Otherwise push forward the difference between minimum weekly spend into the following week and so on until you have enough for the maximum outgoing

Mondays Wednesdays and Fridays, check your bank statements, use that to adjust your week in/out accordingly.

Finally, switch to an umbrella company and let them manage taxation VAT and expenses, its generally a month on month cost rather than the big bill from the accountant at year end if you're a limited Co. I have way to many contractor/consultant mates who have a limited Co just so they can say they are a director on linkedin (a vanity thing).

Managing a budget is a hard task, that why companies have bean counters to sole watch the business budget

JadedAngel Thu 13-Feb-14 15:18:55

Message withdrawn at poster's request.

mrscog Thu 13-Feb-14 15:25:30

Todaysagoodday What an ignorant post!

I would agree with the other posters - budget on the minimum, and then use 'good months' to provide a bit of back up for leaner months and then to save for the luxuries - holiday/Christmas/new stuff etc.

TantrumsAndBalloons Thu 13-Feb-14 15:32:03

Yes of course people in higher paid jobs don't need to budget, what's wrong with you lot??

Anyway OP my DH is self employed as well. I work out what we need to cover on a week by week basis, check the bank balance every week and either transfer the excess into a "spending" account if he has had a good week, or move money around from tax or savings accounts if it has been slow.

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