How to Manage Finances with Irregular Income

There are dozens of careers out there that don’t pay on a regular or reliable basis. Whether you’re a construction worker who relies on the next project to make money or a freelancer who depends on finding new clients, your primary source of income may not be reliable. These steps can help you improve cash flow, so you can live a better life without having to give up the work you love.

Start with Your Budget

It may be time to re-evaluate your budget to determine if it’s as efficient as possible. By identifying unnecessary expenditures, you may be able to set aside extra money each month. One of the most common ways people improve their cash flow is by buying coffee in bulk and eliminating those stops at the corner cafe. Try to identify other ways to minimize your spending. This can help you boost your cash flow without having to actually increase your income levels.

Cover Your Debt in Lean Times

When you rely on irregular income, you likely experience periods in which bills and other payments are due, but you don’t have the cash on hand to make them. Instead of incurring late fees, consider borrowing the money you need. Several installment loan direct lenders are ready to give those with an income gap the money they need to cover the basics. You can also use credit cards in a similar manner. Just make sure to map out a rapid repayment plan once business picks up, otherwise you’ll wind up paying more than you would by just being late on your bills.

Ask for a Raise

Even though your income may not be paid out on a traditional basis, making more money can help you manage your personal finances better. More than half of workers never ask for a raise, either because they find those conversations awkward or they think the answer will be no. If you prepare for the meeting and learn what not to say, you may be able to convince your boss to approve the raise. In many instances, employers may be willing to pay more for talented employees, but they won’t volunteer the raise. The squeaky wheel gets the grease.

Stop Paying Too Much in Taxes

People view their tax returns as free money, but that’s not what it is at all. In fact, this is your money that the government is borrowing interest-free. While Uncle Sam is using your hard-earned money at no cost, you may be struggling just to make ends meet. By adjusting your withholdings, you can still pay your fair share of taxes without overpaying. You’ll get less back at tax time, but you’ll also have more money throughout the whole year.

Pick Up a Second Job

Working a second job doesn’t have to limit your time as much as it used to before the digital revolution. There are plenty of ways to make extra money online or remotely that you can do in your spare time. From creating and selling your own crafts to doing accounting freelance work, the possibilities are endless. Ride-sharing programs have also created a way to earn money that allows you to get out and see your city. Whatever your interests and qualifications, there are likely a number of part-time possibilities that can help you boost your cash flow.

Don’t be afraid to use your imagination in looking for more ways to improve your monthly cash flow. You may be surprised to discover how easy it is to come up with new methods for improving your debt to income ratio. Even changes that seem minor will add up and provide a bigger improvement than you may expect.