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Unformatted text preview: Irregular Income Planning (Instructions) Many people have an "irregular" income, which simply means that their compensation
fluctuates from month to month. This is especially common forthe self-employed, as well as
commission-based salespeople. While this makes it more difficult to predict your income, you are
still responsible for doing a monthly budget! The "Monthly Cash Flow Plan" (Form 5) should remain a crucial part of your plan, as it lays out
exactly how much money you need to bring home each month to survive and prosper. However,
instead of doing the "Allocated Spending Plan" (Form 7), you will use this "Irregular Income
Planning" sheet. On this form, simply look at the individual items from your "Monthly Cash Flow Plan" sheet and
prioritize them by importance. Ask yourself, "If I only have enough money to pay one thing, what
would that be?" Put that at the top of your list. Then, ask yourself, "If I only have enough money to
pay one more thing, what would that be?" That's numbertwo. Keep this up all the way down the list. With your list in place, you’re readyto get paid. If you get a $1,500 paycheck, you will spend
that $1,500 right down the list until it is gone, recording the cumulative amount spent in the
"Cumulative Amount" column. At that point, you're finished spending, no matter what remains
unpaid on the list. That's why the most important things are at the top of the list, right? Be prepared to stand your ground. Things usually have a way of seeming importantwhen they
are only urgent. For example, a once-in-a-lifetime opportunity to see yourfavorite band perform
live may seem important, but in reality, it is only urgent, meaning that it is time-sensitive. Urgency
alone should not move an item to the top of this list! Davgllamley‘s .
Extra copies of this form can be found online: www.daveramsey.comllpumember. FlnanW
UNIVERSITY Irregular Income Planning (Form 8) Item Amount Cumulative Amount Davgkamley‘s .
Extra copies of this form can be found online: www.daveramsev.com/Ipumember. FlnanW
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- Spring '12
- Personal Finance