Your income is half of your budget formula, so you’ve got to make sure that your total is accurate. You need to know what you have to work with. Your budget is only as good as your math.
Some people with an irregular income overestimate – or underestimate – their income. A wrong estimate in either direction is a problem. If you’re overestimating your income, then you’re prone to overspending. You’re left scratching your head, wondering what the problem is. On the other hand, if you’re underestimating your income, then you may not realize how much of a surplus you can afford to invest.
By tracking your income, you can see if you’re on target with your financial goals. You may notice that colleagues are getting paid far more than you, and it may be time to ask for a raise. If you don’t value your time, nobody else is going to.
You may decide that your income could be boosted with a little creativity. If you have a skill, and you certainly do, someone out there wants to pay you for it. With the advent of the Internet, you can sell your goods or services on a variety of websites. Some people use their side income to wholly fund their retirement.
Most importantly, if your income is lacking, do not get negative. There are plenty of others in the same boat as you right now. It’s simple to say it, but you need to stay positive and keep trying. You can grow your income steadily in time.