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.
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Housing Costs with Variable Income
- Base housing costs on fixed income, not variable.
- Consider the average variable compensation over 3-5 years.
Normalize Income for Housing
- Consider your base skillset's replacement value when determining housing costs.
- Use extra income from variable pay for down payments or reducing monthly payments.
Moderate Housing Expectations
- Define your dream house to avoid constantly upgrading.
- Bigger houses lead to more expenses and problems.