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Money Guy Show

"How Do I Budget with a Variable Income?"

Oct 9, 2023
Learn how to budget with an unpredictable income and avoid overspending on housing. Get investment advice for entrepreneurs and the importance of 3D planning. Explore the pros and cons of never owning a home. Discover the importance of following financial principles when buying a vehicle and the potential of money to grow through wise decisions.
21:23

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Quick takeaways

  • Consider the fixed and variable components of your income when deciding on housing expenses with variable income.
  • Evaluate the scalability of your side hustle and assess your financial preparedness before transitioning to full-time entrepreneurship.

Deep dives

Determining Housing Expenses with Variable Income

When deciding on housing expenses with variable income, it's crucial to consider the fixed and variable components of your earnings. If a significant portion of your compensation is fixed and reliable, focus on that when calculating your housing budget. However, if a considerable amount is variable and unpredictable, it's wise to lean towards a more conservative approach to ensure financial stability. Additionally, considering the replacement value of your skill set and potential income from other job opportunities can help establish a realistic housing budget.

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