A cut in hours may be a normal part of the ebb and flow of your employment, but that doesn’t mean it doesn’t hurt.
Losing hours can throw your budget into a tailspin. You built this spending plan on an entirely different set of numbers, and now you have to make do with a lot less.
Is it time to turn in your resignation and get out of the industry? Not if you genuinely enjoy your work. You can learn how to budget for irregular hours by following the tips shared below.
Know Your Lowest-Possible Income for the Month and Work from There
Building a budget on the would-haves and could-haves does nothing but stress you out. So, throw out old budgets that rely on bigger paychecks. You need to start from scratch, figuring out what you earn today.
Ask your boss what your schedule will look like running on these reduced hours. If they aren’t giving you a straight answer, look at past years to find this information. You can look at this time last year to determine how much you earned during the usual slow period.
Create a Prioritized List of Spending
Income is only one-half of your cash flow. Expenses represent the other half.
Once you know how much you can afford, it’s time to figure out what you have to spend. Work out a list of priorities that represent the essentials you cannot, for whatever reason, choose to skip.
For most people, housing costs take the top spot on this list. Rent or mortgage payments and utilities join the following essential spending:
- Basic toiletries and household goods
- Childcare
- Groceries
- Insurance payments
- Internet and phone bills
- Personal loan and line of credit minimum payments
- Tax payments
Personalize your list to reflect your financial situation, adding or subtracting the essentials as needed.
You might have to look through past financial statements to remember essential spending that doesn’t arrive like clockwork every month. While you may pay irregular expenses on a different schedule, they’re no less important, so be sure to include them.
With this list, you know how far your low income must stretch. More importantly, you’ll know if you have enough money to make ends meet.
Leave Big Expenses and Fun Shopping Until the Busy Season
Waiting to buy big expenses is the best policy when operating on a bare-bones budget. But what happens when you have no say over when you make these purchases? You can run into car trouble that requires immediate repairs.
In an emergency like this, you can get help from an online line of credit. By going online, you can compare your options without leaving the house — the same goes for applying!
If you rely on a line of credit in emergencies, the online loan experts at MoneyKey recommend you add it to your essential spending list. When it comes time to repay, a line of credit’s monthly payment is essential if you want to avoid late fines, added interest, and possible credit damage.
Budgeting on Fewer Hours is Possible
Losing hours can be challenging, but you can still pay your bills with the right budget. Balancing this budget next year will be even easier if you start saving for these downturns early.
Keep this in mind once you get back to regular hours. Setting aside some money in an emergency fund can smooth out the next ebb in hours.
