Wednesday, March 6, 2013

Balancing a flexible budget

I listed my expected income the other day. While it will provide the income necessary, none of it is a guaranteed check. It is considered, as I have learned, a flexible income. To balance a flexible income, you need a flexible budget. The more I researched, the more I learned, and I thought I would share with y'all!

In my research, I found 2 articles that helped me the most. I'm posting them here for your reference.

Now, the first one may be geared towards income changing annually instead of all the time, but it still had some powerful insights. From it I gleaned that I should be able to live off of the least possible amount of money I'll be bringing in. I suppose it's technically possible that I'll have no income for a time, but that is why I want a substantial safety net. That way, if I need to go down to just child support and alimony, I can pull from savings, food storage, and try desperately hard to find new students to tutor.

The second link talks about practically developing a flexible income. This is good, because I was confused about how to start. After reading it, it all makes sense, and I believe it is attainable. According to this link, I should make 2 separate lists. One of necessary monthly expenses, and one of wants. The necessary expenses should be bare necessities, like the smallest amount that I could spend on food. The want list I am going to organize by most important to least important. Because the least I could spend on food is pretty skimpy, I'd add food to the want list as well, and buy those things that I'd like to have, even if it's not necessarily a necessity.

So, in adding up my necessities, I see the least amount of money I will need to make ends meet. I will admit that it's more than I had originally thought, but it's attainable. And now I have a very realistic goal to meet!

If you have any tips on balancing a flexible budget, I'd love to hear from you! If you were looking into making a flexible budget yourself, then I pray this was a blessing for you. God bless, and as always, I thank each one of you for your prayers.

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