How to budget when you have an inconsistent income

Since the novel coronavirus hit in march, unemployment rates have been on the rise and many people have been concerned about the state of their wages. For those who are working, some people have had their salaries dropped, and I have many friends and family members who are worried that, if a second wave of the virus happens, they will lose their jobs, too. 

I have never had a consistent income. Before and during college, I worked part-time jobs to make ends meet, and after school, I worked mostly freelance jobs, which meant there was never a consistent amount of money coming in. This never bothered me – I learned how to manage my money in a way that worked for me. So, when the virus hit, and my freelance jobs began to disappear, the way I budgeted my money actually stayed the same.

Many people take specific amounts out of their paychecks each week or month for savings or to give to charity. Because I have never had a consistent amount of money coming in, instead of taking out specific amounts of money, I split up my paycheck by percentages. This way, no matter how much I am earning, I always know how much money I have available for spending, how much should go into savings, the minimum amount I want to give to charity, etc.

This is not the ideal way for everyone to split up their incoming funds, but it works for me. And during such uncertain times, when paychecks seem to be less consistent for many people, I thought I would share how I split up my money as a possible option for others. You can use the percentages listed below, or just use my formula as a starting point to create a budget that works best for you!

My budget

Spend account – 60 percent (40 percent for essentials and 20 percent for recreational spendin)

The biggest chunk of my money goes into my spend account. The key here is that, hopefully, I won’t actually spend all of this money. This account also functions as a short-term savings account for bigger, unexpected expenditures. This is always the account I dip into first for any purchases, big or small, expected or unexpected. 

Charitable giving – 10 percent

Ten percent of everything I earn is donated to charitable organizations of my choice. The organizations I donate to most frequently include Compassion International (I sponsor a child living in Ecuador), the Ulman Foundation, and United Church. I love also letting this account build up sometimes, so when I am asked for more sizable donations, I have the means to give. To be honest, though, I have a hard time saying “no” to people when they ask for support, so this account normally drops into a deficit, meaning I take some funds out of my spend account to donate, too.  

Savings – 10 percent

Ten percent of everything I earn also immediately goes into savings. These are my long-term savings that I don’t touch unless it is an absolute emergency, or for very large purchases that I can’t cover from my spend account alone. As suggested by Dave Ramsay, I always try to have a minimum of $1,000 in this account in case of an emergency.

Adventure Fund – 10 percent

I am a saver, not a spender. I learned a long time ago that this meant I rarely spent on myself, which meant I ended up never doing anything that I really wanted to do with my life. So, I wrote myself a bucket list, and anytime I take a step towards achieving one of those goals, I take the money from my adventure fund. It’s a savings account for all of the life experiences I want to have. These include fun trips, like my road trip to Colorado, but also more practical purchases that are important to me, such as going to college and buying a home in the future. 

Loan payments – 10 percent

Another 10 percent of my paycheck is designated to pay off debts, such as college loans. If there isn’t enough in this account to pay for loans, I take money out of my spend account, adventure fund, and savings (I also often take money from these accounts anyway to put extra money on my loan payments – the faster they are paid off, the better).

For me, having a budget has not been restrictive, but freeing! Knowing what I have to spend and feeling reassured that I have money set aside for paying off debts and saving for the future makes me feel more comfortable spending money on things that I want and need. 

Comment below if you have tips to share on how you best budget your money, or if you have any questions about my budget formula!

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Colorado road trip: Day 11

I had forgotten how amazing it felt to sleep in a bed. I woke up huddled in blankets, my head gently rested on a pillow, my body cuddled by the mattress. For the first time in over a week, I felt well-rested, and I started my day without any aches and pains. 

Joseph and I both showered to take advantage of the luxury of indoor plumbing while we still had it. Then we packed up our belongings and returned to our road trip lifestyle as if the last 18 hours of lavish comfort had never happened. 

Our plan for today was to spend the entire day in the city we had been most excited to visit – Denver. Before we left, I searched for the best coffee shops in the area. We chose to go to Huckleberry Roasters (Huck), even though the reviews said it was pricey, because, with its two U.S. Roaster Championship awards, it is supposed to be one of the best places to get coffee in the country. The cafe, like last night’s restaurant, was somewhere we never would have found had we not been looking for it. It was outside of downtown Denver, just on the outskirts of a neighborhood. The storefront had a brightly painted mural that attracted the eye, but never would I have known by the appearance that it was supposedly the best coffee in the city. Joseph and I each ordered an iced latte and sat at a picnic table in front of the store. 

All our expectations were met. The coffee was a tad over-priced – six dollars for a latte is a bit much – but it was the best we had ever tasted. The milk was steamed to a silky perfection that blended smoothly with the richness of the espresso. Satisfied, we headed to City Park for a late morning walk while we sipped on our coffee. 

It was hotter than we expected. As we walked around the park, sweat poured down my forehead and pooled in the crease of my elbow that was bent to hold my drink. All we managed was a short stroll before deciding to head downtown, hoping the shops would at least provide some air conditioned relief. 

Our first mission in the city was to find a restroom, which was a lot more difficult than I thought it would be. Denver began to lose its magic after thirty minutes of searching without any luck. We finally stumbled along some public restrooms in the downtown mall, but we needed a code to unlock the doors. To obtain this code, we had to purchase an item from a local shop; then the cashier would reveal the secret numbers to us. 

At this point, we were both losing patience. Luckily, someone exiting the men’s bathroom held the door open for Joseph, and just as I was about to give up, a friendly custodian, who must have seen the desperation in my eyes, unlocked the women’s bathroom door for me. 

By now, Joseph and I were hungry for lunch, so we sat on a bench in the mall and ate the picnic we had packed. Once our stomachs were full, we began to peruse the shops. 

Last night, driving through Denver, I had felt that magnetic energy I had experienced last summer. Gazing up at the lights, I was enamored once again by the dynamism of the city set against the beautiful backdrop of distant mountains. But today, amid the current climate of the pandemic and recent riots, Denver revealed itself to be a city like any other. We were approached by people desperate for money, and people far too high to remember why they approached us. Many of the shops were closed, some temporarily and others permanently, including the bookstore I had fallen in love with last summer, where two locals had written personalized poem just for me. Glass windows of shops had been boarded up and graffitied. The hashtag GEORGEFLOYD appeared everywhere, from spray-painted murals to electronic billboards flashing down at us. 

Despite how separated we have felt during this trip from the tragedies and challenges of the last few months, we have not escaped the troubling lives we left behind. In less than a week, we will be back in Maryland, and I am sure our lives will go back to the way they were before. Nothing will have changed. 

My only hope is that we will come back changed. I hope we return to our lives more compassionate, more worldly, more empathetic than when we left. I hope we will have more perspective about the current state of affairs in this country, and perhaps that will help us to know better how we can serve those around us. The reality is that the world around us has not changed, but that does not mean we cannot bring change to our personal realities. 

When we reached the end of the 16th street mall, we sat on the steps of a closed store to rest and figure out where we wanted to go next. To our immense disappointment, we discovered the fireworks scheduled for tonight were cancelled. Just in the last week, Denver decided not to encourage any more crowds than were already congregating. Our original plan was to see the fireworks tonight as a finale to our trip in Colorado, and then we would take our time driving back to Maryland. However, we decided it was more important for us to see the fireworks in this state than to spread out the driving time during our trip back. 

So, sitting on those steps in the heart of Denver, we decided to extend our time in Colorado by two more days, and we began to plan which attractions we wanted to add to the trip. We found a fireworks show in Salida (which is, ironically, where I saw the fireworks a year ago), so we based our itinerary on that. 

We headed back to the car, nervous but excited about our new plan. The first thing that needed to happen to make this extended trip work was we needed to buy more food. There was enough to fuel us for a few days of driving, but not for days of hiking and other, more strenuous activities. We stopped by a Walmart on our way to Colorado Springs to pick up food and finally reach a resolution to another important journey we have been on: the hunt for low-FODMAP ice cream.

I have been craving ice cream since this trip began, and I reached my breaking point last night after dinner. We had stopped at gas stations, supermarkets, and ice cream shops last night and earlier today, but we had not had any luck. However, in the frozen section of Walmart, we found one, small ice cream bar that I could eat. Bolstered by this, we drove to the same Bass Pro parking lot we had stayed at a few days ago, where we hurriedly made dinner. As another treat for ourselves, we had bought a small bag of shrimp to eat with the rice we had packed for the trip. It was a nice change from the canned tuna and chicken we have been eating for days. 

By the time we ate the ice cream, it had melted to the consistency of a milkshake, but it was still just as tasty as it would have been frozen. 

Joseph set up his hammock while I prepared the back of the car for me to sleep. The night spent in a bed seemed like a distant memory. But, as I laid down to rest, I couldn’t help but think of how privileged I am. I, too, have struggled during this pandemic because of my compromised immune system and a lack of work, but I have been blessed with an incredible support system that has helped make sure I have been taken care of. I am not wanting for anything. And while some people are worrying about food, illness, and riots, I am on a road trip in one of the most beautiful states in America with my fiancé. While some people are facing challenges simply because of the color of their skin, I am on the adventure of a lifetime with a beautiful ring and a future full of opportunity waiting for me when I return home. 

The world has not changed. I realize that this road trip is a blessing, that all of the inconveniences, difficulties, and challenges we have faced during it are nothing in comparison to what many people face in their daily lives. I know that the challenges I have always faced in my life, from being a woman, from struggling with chronic illness since the age of 10, from simply being human, cannot compare to what other people have experienced.

But I have changed on this trip. Even in these short 11 days, I have grown and matured, and I have gained new perspectives of this world around me. I have learned more about myself and others, and I have grown stronger. I am ready to return home and find where I belong to do good in this world. There is so much in me that I am ready to share; this blog is just a start. 

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