Of course, no one admires money issues. Precisely, sales agents usually suffer from the inconsistency of their income. This makes budgeting a difficult task, especially if the person is not so cautious and doesn’t have previous planning. If you have a variable income and you’re wondering how to survive any market season, read these following handy tips:
Do not overspend: if you want to go through every month with no financial struggles, you have to have some self-control. You can treat yourself a bit, but try not to over-do it. Check these tips for saving some money when it is possible:
a. Try to avoid travelling and stay closer to home.
b. Spend time with your friends who do not force you to overspend.
Create the worst budget possible. In other words, you should create a budget for your variable income. The best way to do it is to be aware of every single thing you spend money on, so you will be able to know what expenses you can eliminate. In order to create a “worst-case scenario” budget, ignore all expenses, except for the most necessary ones. For instance, check what you can save from meals and stick to this budget for minimum 6 months to add these expenses to your saving account. In case it’s not possible, create another budget that includes more things you love to spend money on and which help you save at the same time. When you witness a bad month, follow this worst-case scenario budget in order to reduce your expenses.
Make sure you know what you are spending, or else, the budget will be useless. For example, if you plan to spend $200 on shopping but you actually spend $300, try to find out the reason behind this increase in the expense and adjust the budget or work on decreasing the expense. Be aware of all the variety of things you buy that can have much more expenses than you might ever expect, such as coffee, snacks, cigarettes…
Make more efforts on marketing. Enhance your social media marketing so you can reduce or get rid of other expensive marketing campaigns. If you still haven’t started, sign up for Facebook or Twitter accounts and start posting daily offers or tips. Make sure you post as much information as possible, and focus on subjects that interest friends and families so they can also help you share the word. The more you have followers, the more you sell products and services.
Create an emergency fund. It is a necessary thing to do in order to organize your finances in an effective way. An emergency fund will help you be ready to face unexpected expenses. For instance, if your car needed some repairs, you will be obliged to spend money you weren’t planning to spend. However, when you have saved some money for emergencies, you will be able, after 6-12 months, to spend more on personal stuff without affecting your budget, while keeping your business successful even during the hardest months of the year.