Are you looking for how to save money with irregular income? A lot of people have no idea how much money they will make next month. This is especially common in the lives of freelancers. Such uncertainty can bring a lot of stress to your life, especially if you are trying to save money. Fortunately, there are several strategies to save money with an irregular income.

Do you have an irregular income? Here are tips to save money.

1. Set financial goals to save money with irregular income

By setting your financial goals, you will clarify what your future might look like. Whether one year, ten years or twenty years from now. Strive to determine as accurately as possible the amount you will need to achieve your short-term and long-term goals – whether it’s a mortgage test, buying a new car or a summer vacation.

Create a system that will keep your daily life in line with your goals. What exactly does that mean? Break down each of your goals into short-term steps, which you will fulfill within one new month. This way, you will know that you are gradually moving towards your desired goal. And don’t forget to monitor your progress regularly. A useful tool is available with Monespire to monitor your financial goals progress.

2. Know your minimum living wage to save money with irregular income

Think of your life as a business. To succeed, you need to know your minimum amount of life. So what is the smallest amount you need to exist?

Think of your life as a business. To succeed, you need to know your minimum amount of life. So what is the smallest amount you need to exist?

• Start with a basic budget.

To calculate the minimum subsistence amount, consider only absolute necessities.

If there is something you can do without a month without major consequences and still live safely and comfortably, do not include it in this calculation.

• Write down the total monthly minimum that you need to have.
• Add an extra backup.

Occasionally, there are unexpected expenses that will increase your basic subsistence level. Therefore, add approximately five to ten percent to the resulting amount.

• Add your monthly financial goals to this mix.

Smaller financial goals achievable within one month also belong to your minimum subsistence amount.

• Calculate the resulting amount

Basic subsistence minimum + advance (10%) + monthly financial targets = minimum subsistence amount.

Your minimum financial amount is the basis for your handling of money. If you have an irregular income, knowing this amount is extremely important. It will make you work hard enough every month to earn that amount without giving up your financial goals.

3. Gradually increase your savings as much as possible

The struggle to earn a minimum wage shouldn’t come as a surprise to anyone. However, saving does not mean that one has to completely give up the joys of life. We can have fun from time to time. Of course, even the smallest increase in our savings can have a big positive effect on our lives in the future. And this is something we should not forget.

If you want to move forward even faster, try the practice of increasing your savings by one percent more often, for example, every year, and your future savings will increase even more.

This strategy demonstrates how small improvements can have a significant impact on a person’s overall financial situation. In addition, it is very easy to start with them immediately.

In conclusion

Having irregular income might make you have some unexpected open days and open hours. Saving more money will allow you to enjoy those breaks without worrying about when your next paycheck will arrive.