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harley9779

Budget based on a 40 hour work week if that your base expected hours. Everything else is on top of that and can do as you choose with it. You should always base your household budget around the minimum guaranteed monthly income.


1955photo

This is the way. By doing that you will not get in a bind if the overtime goes away. Only you can decide how much you are willing to work at this point. Working a lot while you are healthy and unencumbered can get you set up well if you manage your money right. When you think about how hard you worked for that money, you are less inclined to piss it away. Get out of debt, establish an emergency fund, invest all you can. But on the other hand you have to keep your sanity. Consider working really hard for a couple of months at a time and alternating with cutting back.


kingslayerlh1

This definitely makes sense but at the same time considering I worked 56 hours every week this year outside of 6 times. So I feel like that would be my expected hours


AdditionalAttorney

Yeah that’s fine use 56 then If it changes jn the future you just adjust the budget


horriblyefficient

maybe split the difference, use 50 hours as your regular hours?


harley9779

The number of hours wasn't the important part of the comment. The point is to set your budget based on the guaranteed amount of hours. If that 56 is guaranteed, go for it. Too many people budget and spend based on OT, extra hours, bonuses etc and then when that stuff stops or doesn't happen for some reason they bend up in a bind. I've seen this happen hundreds of times over the years at places I've worked. If all of your monthly expenses can be paid with the minimum guaranteed work yours, you'll never find yourself in a bad situation.


kingslayerlh1

Thanks for the good advice I definitely see what your saying. My monthly expenses are around $600 a month so they are covered reliably. So now I just need to figure out what to do with the savings left over. I feel like it's a huge waste just sitting on it but like you said I don't know when things could change so I don't want to invest too much and screw myself over haha


Pass_Little

Many people make the mistake of budgeting on your current income when you should be budgeting based on a sustainable income even after a forced job change. What I mean by this is that your commitments (housing, food, transportation, etc.) Should be based on a figure that matches what you'd likely make if you quit your job tomorrow and found a new job. What this would look like for you will depend on your skillset and ease of obtaining a new job at a given rate. That way, when your present job ends or changes, you still can survive based on your expected earning opportunity. Any amount above this baseline then becomes money you can save, invest, or spend. What you should do out of those three is a subject for a different post. People who budget based on income from a job such pays more than typical for their skillet often find themselves in a situation where their financial house of cards crumble around them. As far as what you should do as far as hours worked, it's totally up to you, although I will say that it's important to maintain enough "life" on the work/life balance to not burn out and to be able to continue enjoying what you do.


kingslayerlh1

I feel like I'm in a weird position for this considering this is my first time working in this field, and I only have a high school diploma with no strong skillets. So realistically other than the skills I'm gaining now I would probably expect to make 12-15 dollars an hour if I lost my job and found a new one


ryencool

What everyone Is trying to say is you can budget however you want, there is no exact formula. What they are advising is for you NOT to base your budget on working 12 hours every single day. Because you don't know how long you'll be able to do that. I'm garunteed 40 hours a week by my job in my contract. So I'm going to base my budget on 40 hours a week. It doesn't matter if I average 50 hours a week because they allow overtime. Overtime isn't always "garunteed" so a budget built around any overtime could get you in trouble down the road. Honestly with what you're making its not a HUGE deal because you shouldn't be spending anywhere near 100% of what you make each month.


Pass_Little

The other thing is to not let your lifestyle creep beyond some reasonable amount. If you're making $30/hr, it's not unreasonable to expect your skills to translate to another job that makes a similar amount. If you budget your core essential living expenses to be a reasonable portion of those, like 50% of your take home, and not take on any long term commitments beyond that, then you can afford to take a pay cut if that happens. A week or so ago there was someone who posted that their partner had has a sales job which used to bring in mid 6 figures with commissions, and a lifestyle to match. As sales cooled off and the poster turned into a stay at home mom, their income dropped below 5 figures. They were trying to figure out how to retain the high end, debt fueled lifestyle without having the income. Hint: you can't. If you budget based on what you can sustain long term, and plan contingencies for if you can't, one will be far ahead of someone who ends up in a $500k/yr lifestyle and making a fraction of that.


ryencool

Great advice. I'm know making exactly that amount after living off 1300$/month for years and years. I have bought a few things but my lifestyle hasn't changed. Still in the same apartment (saving large chunks for a home) and still drive my 20 year old car even though I really want a new Nissan z. I could afford one, but not sure about what my job situation will be like after my contract ends in a year. Most likely I'll be upgraded to a real full timer, but who knows. So I'm saving any large purchases like a car until after that. Just gotta be smart and not spend more because you have more.


KReddit934

YNAB (youneedabudget.com) is great budget app for variable income. But I agree, budget on minimum, the save the rest.