Freelance budgeting

[SnippedYerBarbour]

I've been a freelancer (sole earner) for many years and never had a big problem budgeting. Then I got divorced, and my income took a hit at the same time. On top of that, I'm required to pay alimony to the tune of several hundred per month. It's calculated on my earnings from two years ago, which are not at all what I'm making now!

Long story short, for at least the next few months I have to be extremely frugal. That's especially tricky when there's no knowing when payments will come in, and not being able to do long-range planning. Any advice for freelancers trying to budget? How long is a piece of string?

Oh, it might help to say that I have access to credit/savings/overdraft when absolutely necessary, so I have a buffer against cash flow problems. However, I always need to keep substantial amounts on hand for paying taxes etc, so any money I borrow from myself always needs to be paid back.

Perhaps it would help if I posted my outgoings? Anyone fancy brainstorming with me?

It sounds like it’ll be a case of the usual: only buying essentials and shopping around for them, shopping around for utilities, insurance etc to get the best deals and seeing if there’s any way of increasing your income.

Unfortunately working more is a non-starter, for two reasons: I’m now a single parent (hence not overmuch time to work) and in any case if I work more, I’ll be liable for more alimony down the track. I have to pay based on my income. I also have to pay for everything for the 2 DCs.

TBH I only really buy essentials anyway. But then what ARE essentials? I currently have one pair of trainers, which are looking a but tatty. Do I wait until they’re completely worn out before replacing? Likewise jeans (one winter pair). Or should we be cutting down the grocery shop to beans on toast, pasta with tomatoes every night? I’m just lost for what to do.

Head over to the moneysavingexpert site. The forums are good for budgeting and money management advice.