How do you budget your income?

[briggsy13]

This is my 3rd year of doing real estate full time. My husband is also self employed and makes little to no money (long story). I am trying to figure out a way to budget my income so that when I do get paid it can last til the next time, without knowing when the next time will be! Our expenses each month is at bare min. $2500. Last year I only made 16,000 but that was working only 6 months, (had a baby in May). Hoping to double that this year, but so far probably not!! Any advice or help would be great!
Thanks
:confused:

[TheHiltonHeadSpecialist]

Briggs,

Congratulations on your baby! Wow what a hard question to answer. I don't think that there is any really good answers. $2,500 /month = $30,000 /yr in expenses and you made $16,000. Is that $16,000 minus expenses or is that gross income?

[briggsy13]

yeah unfortunately that was gross!! I think once we get caught up I will set up an account and start giving myself a paycheck each week and force myself to live off that instead of getting large chunks at a time.

[jimkimmons]

It's a matter of nailing down your expenses, both business and personal, then doing a REALISTIC projection of income. I have written an article with a spreadsheet for the expense side (http://realestate.about.com/od/earlyfinacialplanning/p/budgetsheet.htm)and another with a spreadsheet and income funnel (http://realestate.about.com/od/earlyfinacialplanning/ss/incomefunnel.htm) explanation.

The more difficult is the income funnel sheet, but try hard to be realistic in your expectations and as accurate as possible with your expected leads from various marketing venues, as well as conversion numbers. Better to err on the side of caution.

[TheHiltonHeadSpecialist]

Jim is right on and so are you briggs. Not only will this help you know when and where you will be getting paid but also help you or us understand how our business is proforming.