Not everyone has the luxury of a consistent income every month.
While there are plenty of jobs out there that can deliver a regular paycheck, many companies are beginning to experiment with things like freelance positions and the gig economy to keep costs low.
If you think that you would be well-suited to a flexible environment where you can work from home, and choose your own hours, then you might decide to work as a freelancer, or even go self-employed.
This kind of job can be a great way to discover a new sense of work/life balance.
You can pursue a career in an industry that you genuinely care about, and sometimes even choose your own hours.
However, you’ll also need to handle the stress of a variable income that changes rapidly from one month to the next.
Here are some top tips to help you.
Know Your Options
Finally, if you’re planning on pursuing a new kind of career where a constant income isn’t a guarantee, then it makes sense to know where you can turn for help if something happens where you need some extra cash.
If you’re self-employed, then you might have a harder time getting personal loans and cash advances from traditional lenders.
However, payday loan providers often make getting approved for a loan much easier, regardless of what you do for a career.
Check out what your options look like so you’re prepared in case the worst should happen.
Create a Bare Bones Budget
First, look at your monthly expenses and ask yourself how much money you need to make to reasonably pay all of your bills, and pay for crucial things like food.
A bare bones budget asks you to remove all luxuries and extras from your monthly routine, so you can see how much cash you really need to survive.
Once you have this number, you’ll be able to plan how you’re going to ensure that you make at least enough money to live each month.
This could mean that you sign contracts with companies that are willing to pay you for a certain number of hours each month.
It could also mean that you refuse to accept jobs that pay less than what you’re worth.
Build an Emergency Fund
No one is guaranteed to have a consistent income for the rest of their lives.
Even people in traditional careers could lose their job one day and have to turn to their savings.
However, if you’re living on a variable income, then you’re under even more pressure to ensure that you have a safety net in place.
Start building an emergency fund from the moment you start earning any cash above what you need for your bare bones budget.
Although it might be tempting to splurge and treat yourself, all of your extra cash should go towards your savings for at least as long as it takes to build a three-month buffer.
This means that you’ll have enough cash in your savings to pay for three months of bills if something goes wrong.