Managing budgeting with multiple incomes
Published 20 July 2015 by Emily Bancroft
Don’t get confused when you’ve got different amounts coming in – budgeting doesn’t need to be complicated.
If you want to keep track of all the bills that need paying in a given month, it’s important to have a really solid budget for your household expenses. But if you work two or three jobs, or you’re receiving benefits or tax credits on top of what you earn, this can make budgeting a bit more confusing.
When you have multiple incomes, it can mean that you’re getting wages every week but only getting benefits monthly, so you might not always have the same amount of money to budget every week. Let’s take a look at how you can cope with this.
Organising your pay
Thinking of your income as one amount every month, another every four weeks and another every week can easily confuse you, but you don’t have to be confused by your multiple incomes. Start by writing down everything you earn in a month – whether that’s wages, benefits, or tax credits. Make sure if you get paid weekly wages to write it down four times, so it’s the equivalent of how much you’d be getting paid in a month.
The total figure you have written down is your monthly income, and this is what you’ve got to work your budget out off. However, the main problem with this comes when you have several bills to pay all throughout the month, in between when you’ve got money coming in.
Let’s say you get your wages weekly and your tax credits come in at the start of the month. If your rent is due by the end of the month, you might have already spent the money from your tax credits on other bills, and your weekly wages might not be enough to cover the rent.
If this is the case, you’ll need to make sure to put aside enough from your tax credits or benefits so they last you until the end of the month. Write down all of your outgoings – rent or mortgage, energy bills, water, council tax, TV packages, internet, mobile and landline bills, as well as any other financial commitments you have. Add them up, and this will show your total outgoings in a given month.
Now all you need to do is work out a household budget to cover all of your bills, and make sure that you set aside enough money from each of your incomes to do this.
Help from thinkmoney
If you’re looking for a bit of help with your budgeting when you’re getting multiple incomes, you might want to consider a thinkmoney Current Account. It works like a bank account but the money that’s needed to cover your regular bills every month is ring-fenced, so you can’t spend it. This means your bills will always be paid automatically every month, and you don’t need to worry that you’ll be spending money that was supposed to be kept aside for something important.
You’ll pay £14.50 a month for a thinkmoney Current Account or £21.25 for a joint account and you won’t ever have to pay any late fees or bounced payments charges. To find out more about how the account could help you manage your money, check out our dedicated thinkmoney Current Account page.