💸 How to budget on a fluctuating income

Saturday,
September 16, 2023

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The week in review

• The consumer price index rose 0.6% in August, the biggest monthly gain of the year, bringing inflation to 3.7% year-over-year, more than economists had expected. Rising energy prices played a significant role in the increase. Meanwhile, core CPI, which excludes food and energy, accelerated 0.3% for the month, and 4.3% annually. Housing costs accounted for the majority of the increase in core inflation.

• British chip maker Arm (ARM) debuted on Wall Street, raising nearly $5 billion and marking the biggest initial public offering in the U.S. this year. Arm shares ended their first trading day nearly 25% higher.

• A possible consensus among Fed officials might mean there won’t be another interest rate increase at the next FOMC meeting on September 20, according to a report. As more data continues to show softening of both inflation and the labor market, some Fed members seem to believe current interest rates could be restrictive enough.

For more economic news, visit On the Money — SoFi’s one-stop-shop for news, trends, and tips!

How to budget on a fluctuating income

Setting up a budget can be one of the most important things to do for your financial health and success. But budgeting on a fluctuating income can be particularly difficult.

Constantly adjust your budget

When you have a regular income, your budget will likely look the same each month. But when your cash inflow is irregular or fluctuating, you have to take a more hands-on approach. If you don't get paid as much, you may have to go without or defer some expenses. Regularly monitoring and adjusting your budget as you go is key when you have a fluctuating income.

Don't spend more when you make more

Be careful when you make more money than expected for a month. Rather than just spending your windfall, it's a good idea to make sure that you have an adequate emergency fund. That way, if (or when) you have leaner months, you have a safety net to draw on to make sure you can still pay your bills and obligations. Here’s 6 steps to get started.

An inconsistent income makes it all the more important that you budget well to make sure that you can cover necessary expenses while still working toward your financial goals. Here’s more on how to do just that.

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