Wtf is a Variable Income 🤔
Having a variable income means that the money you receive each time you are paid isn’t the same. In other words, you don’t rely on a regular paycheck. A variable income is very common for artists and freelancers who work on a project-by-project basis.
Having a variable income is cool, but when the bills come all at once each month, it gets tricky. That’s why we’re sharing some hacks to make tackling the monthly money puzzle a breeze, especially when your income likes to keep things interesting! 💡🧩
Budgeting With a Variable Income 📝
Budgeting on a variable income can be a rollercoaster, but with a game plan, you’ll ride those financial waves smoothly. 🎢
Creating an initial budget is all about prioritizing. List out your expenses, figure out your needs vs. wants, and set some goals. For a more in-depth guide on budgeting check out our last post: Financial Freedom for Creatives: Take Control of Your Budget 💰🎨.
Pro-tip: When guesstimating your earnings, try looking at what you made last year to help create realistic goals.
Keeping Tabs on Your Variable Income 🗂️
In the world of variable income, tracking your cash flow is the key to financial finesse. Start by creating a simple spreadsheet or use a budgeting app – anything that vibes with your style and is easy to access.
Categorize your income sources for a visual of where your money’s coming from. Whether it’s freelance gigs, side hustles, or that part-time job, seeing the dollars roll in keeps you in the financial driver’s seat. Updating regularly is key.
In the variable income game, knowledge is power. Stay savvy, track diligently, and watch your financial landscape transform from uncertainty to a well-choreographed cash ballet! 💃💰
Some Extra Tips and Tricks 🪄
We’ve done the research, so you don’t have to. Check out these extra tips to make handling your variable income a bit easier.
1. Avoid the ‘Feast or Famine’ Blues ❌
Variable income vibes mean some months are loaded, others not so much. While it’s tempting to ‘feast’ after a big paycheck, we say: stick to your budget, stash the rest in savings, and dodge the ‘famine’ on lean months.
2. Create Cashflow Variety Vibes 💰
Navigating a budget with unpredictable income—it’s a bit like a money maze! Seeking a steady cash fix each month? Consider applying for a part-time job at a place you love (hello discounts), snagging consistent event work (coat check pro, anyone?), or unleashing your skills into a side biz (think workshops or private lessons)! Get that cash flowing more predictably.
3. Have Self-Payday Power 💪
Now this one may take a bit longer to get going as it requires some savings. When your savings have enough for two months’ expenses, consider directing your paychecks there. Just transfer your budgeted amount to your checking at the start of each month—basically providing yourself with a paycheck you can rely on.
Does managing your variable income still seem super overwhelming? Do you wish someone or something specialized in variable incomes could just take care of it for you? Well guess what…. Sai can! 💜✨
How Sai Can Help 🌟
Are you sick of the negative impact money management is having on your mental health, career growth, and ability to focus on your craft? Sai can help!
As creatives ourselves, we know the struggle and have created a platform to help make managing a variable income easy.
Sai is going to:
💵 give you an overview of your income and expenses
📈 catch every business expense to organize and maximize your write-offs
💰 tell you how much to put away for your taxes each month
📁 allow you to file your taxes in a single click
And there is lots more to come. We are always working to upgrade Sai to be a freelance artist’s financial bestie 🤑 👯