Comments on: An Unpredictable Income http://gailvazoxlade.com/blog/archives/1228 Thu, 11 Mar 2010 02:25:26 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: zud http://gailvazoxlade.com/blog/archives/1228/comment-page-1#comment-20851 zud Mon, 07 Dec 2009 07:40:10 +0000 http://gailvazoxlade.com/blog/?p=1228#comment-20851 i have the opposite problem as Kerry, i'm self employed with the ability to work as much or as little as i want. i find it difficult to work beyond covering my basic needs, it is "work" after all and i'd much rather be doing things i enjoy more such as relaxing, hobbies, exercise, self-care, spending time with friends and family etc. i work enough to cover my basic expenses and a small cushion, i have no idea what i need to retire on and how much additional i'd need to earn. i envy those who have the motivation to just keep on working and working long hours....my job isn't terrible but i'd still rather do other things. i have the opposite problem as Kerry, i’m self employed with the ability to work as much or as little as i want. i find it difficult to work beyond covering my basic needs, it is “work” after all and i’d much rather be doing things i enjoy more such as relaxing, hobbies, exercise, self-care, spending time with friends and family etc. i work enough to cover my basic expenses and a small cushion, i have no idea what i need to retire on and how much additional i’d need to earn.

i envy those who have the motivation to just keep on working and working long hours….my job isn’t terrible but i’d still rather do other things.

]]> By: Cheryl http://gailvazoxlade.com/blog/archives/1228/comment-page-1#comment-20544 Cheryl Tue, 01 Dec 2009 19:08:07 +0000 http://gailvazoxlade.com/blog/?p=1228#comment-20544 Great post Gail! I started working for myself 19 months ago and was initially mixing the money with my husband and I's personal accounts. It got to be too confusing to figure out what was "business" money and what was personal that I started withdrawing a "salary" a few months ago and leaving the rest in a seperate bank account. This has helped with the accounting and also making sure we're not going crazy in good times and searching for pennies in the couch when things are a bit slow. Set it and forget it! That motto has saved me more than once already :) Thanks for this great post. I'm hoping to stay in the "self employed" category for a few years as it totally suits my lifestyle and personality so hopefully these methods you've mentioned will work for me and I'll be able to stick to them! Great post Gail! I started working for myself 19 months ago and was initially mixing the money with my husband and I’s personal accounts. It got to be too confusing to figure out what was “business” money and what was personal that I started withdrawing a “salary” a few months ago and leaving the rest in a seperate bank account.

This has helped with the accounting and also making sure we’re not going crazy in good times and searching for pennies in the couch when things are a bit slow.

Set it and forget it! That motto has saved me more than once already :)

Thanks for this great post. I’m hoping to stay in the “self employed” category for a few years as it totally suits my lifestyle and personality so hopefully these methods you’ve mentioned will work for me and I’ll be able to stick to them!

]]> By: Emma http://gailvazoxlade.com/blog/archives/1228/comment-page-1#comment-20484 Emma Tue, 01 Dec 2009 11:33:09 +0000 http://gailvazoxlade.com/blog/?p=1228#comment-20484 Silverss, Jessie, Tessa: One thing with couponing so much is that when looking at when they came in, did you notice that they walked straight past the fresh fruits and vegetables? Of course you can get canned and frozen, but I didn't see much in the way of canned fruits in that pantry. Personally, I wouldn't want that much processed food in my diet, and that's all I ever see coupons for. I do buy some processed food, but it's not all that is in our cupboard. Also, I've never seen a Sunday paper full of coupons - do those exist in Canada? I only ever see store flyers, and coupons on the shelves (or being given away by product demonstrators) Silverss, Jessie, Tessa:

One thing with couponing so much is that when looking at when they came in, did you notice that they walked straight past the fresh fruits and vegetables? Of course you can get canned and frozen, but I didn’t see much in the way of canned fruits in that pantry.

Personally, I wouldn’t want that much processed food in my diet, and that’s all I ever see coupons for. I do buy some processed food, but it’s not all that is in our cupboard.

Also, I’ve never seen a Sunday paper full of coupons – do those exist in Canada? I only ever see store flyers, and coupons on the shelves (or being given away by product demonstrators)

]]> By: *pol http://gailvazoxlade.com/blog/archives/1228/comment-page-1#comment-20470 *pol Tue, 01 Dec 2009 04:29:29 +0000 http://gailvazoxlade.com/blog/?p=1228#comment-20470 @ Risa, your plan sounds similar to mine. I am self employed with contract work and it is very seasonal, market sensitive and tempermental for hundreds of reasons (freelance graphic design). I have a steady client set, but when their client base shifts, my income does too. The way we combat this is relying heavily on my husband's steady income. Essentially all of our fixed expenses and necessary variables MUST fit within my husband's income. My income goes to the "extras" like building the emergency fund, dealing with planned spending, and one particularly busy year I was able to contribute a lump prepayment on the mortgage! Sure it means we can get some of the extras in life too, but we are comfortable knowing we can drop them all at a moments notice (and we do!) We avoid debt fiercely for the precise reason that we don't know what I'll be bringing in from month to month and always budget for my income to be $0 just to be sure! It sounds like we have all our eggs in one basket (my husband's job), but my income is also the "back-up plan" ready to kick into high gear if something happens to his income. It's been well orchestrated to work for our lives; I get to be there for the school age kids, we have more liquid income options and my skills stay up-to-date in case they are needed more seriously! @ Risa, your plan sounds similar to mine.
I am self employed with contract work and it is very seasonal, market sensitive and tempermental for hundreds of reasons (freelance graphic design). I have a steady client set, but when their client base shifts, my income does too.
The way we combat this is relying heavily on my husband’s steady income. Essentially all of our fixed expenses and necessary variables MUST fit within my husband’s income. My income goes to the “extras” like building the emergency fund, dealing with planned spending, and one particularly busy year I was able to contribute a lump prepayment on the mortgage! Sure it means we can get some of the extras in life too, but we are comfortable knowing we can drop them all at a moments notice (and we do!) We avoid debt fiercely for the precise reason that we don’t know what I’ll be bringing in from month to month and always budget for my income to be $0 just to be sure!
It sounds like we have all our eggs in one basket (my husband’s job), but my income is also the “back-up plan” ready to kick into high gear if something happens to his income.
It’s been well orchestrated to work for our lives; I get to be there for the school age kids, we have more liquid income options and my skills stay up-to-date in case they are needed more seriously!

]]> By: Kerry http://gailvazoxlade.com/blog/archives/1228/comment-page-1#comment-20469 Kerry Tue, 01 Dec 2009 04:07:36 +0000 http://gailvazoxlade.com/blog/?p=1228#comment-20469 Risa thank you so much for the post, I will definitely look for that book (at the library of course!). We do have a very similar situation and did try to set out kind of a 'target salary' but it is just SO hard when you have the opportunity to work some additional hours, pay a bit more on the mortgage, etc. Our financial planner has us retiring at 50 which I don't even want to do, I would much rather work a little less now & work a little longer later, but I can't seem to relax. Risa thank you so much for the post, I will definitely look for that book (at the library of course!). We do have a very similar situation and did try to set out kind of a ‘target salary’ but it is just SO hard when you have the opportunity to work some additional hours, pay a bit more on the mortgage, etc. Our financial planner has us retiring at 50 which I don’t even want to do, I would much rather work a little less now & work a little longer later, but I can’t seem to relax.

]]> By: Jason http://gailvazoxlade.com/blog/archives/1228/comment-page-1#comment-20468 Jason Tue, 01 Dec 2009 03:43:55 +0000 http://gailvazoxlade.com/blog/?p=1228#comment-20468 Some great ideas. One area that needs to be covered is investing. For example, if it retirement investments, you can be a little more patient; however, if it is day-to-day investments, I'd encourage people look at 5% investment strategy I share. It creates free cash flow within usually 3 days, and allows for capital protection. Always keep a cushion, but don't be afraid to invest in the markets and make money in the meantime. Some great ideas. One area that needs to be covered is investing. For example, if it retirement investments, you can be a little more patient; however, if it is day-to-day investments, I’d encourage people look at 5% investment strategy I share. It creates free cash flow within usually 3 days, and allows for capital protection.

Always keep a cushion, but don’t be afraid to invest in the markets and make money in the meantime.

]]> By: Tessa http://gailvazoxlade.com/blog/archives/1228/comment-page-1#comment-20462 Tessa Tue, 01 Dec 2009 00:55:35 +0000 http://gailvazoxlade.com/blog/?p=1228#comment-20462 silverss and Jessie: Couponing here in Canada is not as good as the U.S., but you still can get plenty of products for free or nearly free. London Drugs will allow you to use multiple coupons as long as the bar codes are different. Superstore allows both a store coupon and a manufacturer's coupon for a product. Other stores have special double coupon days. Check out some of the stories on http://www.savemoneyinwinnipeg.blog.ca silverss and Jessie:

Couponing here in Canada is not as good as the U.S., but you still can get plenty of products for free or nearly free. London Drugs will allow you to use multiple coupons as long as the bar codes are different. Superstore allows both a store coupon and a manufacturer’s coupon for a product. Other stores have special double coupon days. Check out some of the stories on http://www.savemoneyinwinnipeg.blog.ca

]]> By: Amber http://gailvazoxlade.com/blog/archives/1228/comment-page-1#comment-20454 Amber Mon, 30 Nov 2009 21:05:11 +0000 http://gailvazoxlade.com/blog/?p=1228#comment-20454 My husband has been self-employed for most of his adult life. We learned these rules early on. We also found that if we could set ourselves up to withdraw a predictable amount from his company, it helped our personal accounting. Keeping the two separate except for that monthly draw meant that we weren't spending business money just because we had it, and ensured that we stuck to our budget. My husband has been self-employed for most of his adult life. We learned these rules early on. We also found that if we could set ourselves up to withdraw a predictable amount from his company, it helped our personal accounting. Keeping the two separate except for that monthly draw meant that we weren’t spending business money just because we had it, and ensured that we stuck to our budget.

]]> By: Catherine http://gailvazoxlade.com/blog/archives/1228/comment-page-1#comment-20453 Catherine Mon, 30 Nov 2009 19:59:09 +0000 http://gailvazoxlade.com/blog/?p=1228#comment-20453 Great post Gail - interesting comments. Heidi~run, do not walk to your computer and make up a sign to post stating that your fee will be expected if you are not given at least 24 hours notice. Great post Gail – interesting comments.
Heidi~run, do not walk to your computer and make up a sign to post stating that your fee will be expected if you are not given at least 24 hours notice.

]]> By: Risa http://gailvazoxlade.com/blog/archives/1228/comment-page-1#comment-20444 Risa Mon, 30 Nov 2009 18:16:15 +0000 http://gailvazoxlade.com/blog/?p=1228#comment-20444 Thanks for the post on this topic, Gail. We've been living on self-employed income for some time now, and while we didn't get ourselves into huge trouble when we were just 'drifting along', it wasn't for any good reason: hubby and I are just conservative (financially) and not into spending to impress. But things are much better now that we have a Gail-like budget and a plan! Kerry--boy, do I relate. One of the hardest things about self-employment is that time taken off 'costs' the family; a weeks' vacation is not just the travel-and-hotel costs, it's also a week of lost pay; it's lost pay when hubby is home for a sick day; conferences and schmoozing are important for his career, but conferences again cost us not just in terms of registration and travel expenses. In terms of finding some balance, we never had been able to until Gail. We now have a budget, including savings and planned spending (house renos, vacation, gifts and Xmas, etc.) Hubby and I sat down and talked about what our own comfort points are--how much of an emergency fund? How little left on the mortgage? How much of a 'float' in the business account? How much would we need to make our bills on a bare-bones budget? How much to live a balanced and satisfying life? The numbers we determined seemed a long ways off, but by being so much more CONSCIOUS of what we are spending our money on, and setting up those beloved automatic savings transfers at ING, we may well be there within a year or two. At which point, we are going to move to a system where we know we need X dollars per year to live a happy balanced life (some travel, still savings, etc) and that will determine how much to work. So he'll be in a position, once the bills are met for the year, to work only on those contracts that interest him, or perhaps forgo work after a certain point in the year and take a stab at writing, or developing a custom software product, or whatever floats his boat. Hope this all doesn't sound too sexist either; this division of labour works well for our homeschooling family (I am a former teacher). We've got disability on hubby, but if anything seriously awry should happen, I am more than happy and capable of finding paid work as well. I totally agree with Gail that you do whatever it takes to pay your bills. But right now we are doing better as a family with him earning and me managing the money, than we did with both of us earning (and spending!) and no one doing the planning. YMMV. Kerry, I also recommend the book _Why Swim with the Sharks_ to get a handle on how much you need to save for retirement. (nb. The book is for Canadians) Though it is not common, there is such a thing as saving too much, and working too much for tomorrow instead of for today. Thanks for the post on this topic, Gail. We’ve been living on self-employed income for some time now, and while we didn’t get ourselves into huge trouble when we were just ‘drifting along’, it wasn’t for any good reason: hubby and I are just conservative (financially) and not into spending to impress. But things are much better now that we have a Gail-like budget and a plan!

Kerry–boy, do I relate. One of the hardest things about self-employment is that time taken off ‘costs’ the family; a weeks’ vacation is not just the travel-and-hotel costs, it’s also a week of lost pay; it’s lost pay when hubby is home for a sick day; conferences and schmoozing are important for his career, but conferences again cost us not just in terms of registration and travel expenses. In terms of finding some balance, we never had been able to until Gail. We now have a budget, including savings and planned spending (house renos, vacation, gifts and Xmas, etc.) Hubby and I sat down and talked about what our own comfort points are–how much of an emergency fund? How little left on the mortgage? How much of a ‘float’ in the business account? How much would we need to make our bills on a bare-bones budget? How much to live a balanced and satisfying life? The numbers we determined seemed a long ways off, but by being so much more CONSCIOUS of what we are spending our money on, and setting up those beloved automatic savings transfers at ING, we may well be there within a year or two. At which point, we are going to move to a system where we know we need X dollars per year to live a happy balanced life (some travel, still savings, etc) and that will determine how much to work. So he’ll be in a position, once the bills are met for the year, to work only on those contracts that interest him, or perhaps forgo work after a certain point in the year and take a stab at writing, or developing a custom software product, or whatever floats his boat.

Hope this all doesn’t sound too sexist either; this division of labour works well for our homeschooling family (I am a former teacher). We’ve got disability on hubby, but if anything seriously awry should happen, I am more than happy and capable of finding paid work as well. I totally agree with Gail that you do whatever it takes to pay your bills. But right now we are doing better as a family with him earning and me managing the money, than we did with both of us earning (and spending!) and no one doing the planning. YMMV.

Kerry, I also recommend the book _Why Swim with the Sharks_ to get a handle on how much you need to save for retirement. (nb. The book is for Canadians) Though it is not common, there is such a thing as saving too much, and working too much for tomorrow instead of for today.

]]> By: Middle Way http://gailvazoxlade.com/blog/archives/1228/comment-page-1#comment-20439 Middle Way Mon, 30 Nov 2009 16:10:40 +0000 http://gailvazoxlade.com/blog/?p=1228#comment-20439 This post really resonates with me as I have been self employed for the past 12 years. How I am weathering the ups and downs of the economy is through "pretending that next year is going to be harder" and adjusting my budgeting spreadsheets accordingly. It also helps me see where I can voluntary trim back now. If I do better, then the extra money is considered a bonus and is divided in half for my husband and I. If I don't make the projection, then I have money set aside in an account to make up the shortfall. This post really resonates with me as I have been self employed for the past 12 years.

How I am weathering the ups and downs of the economy is through “pretending that next year is going to be harder” and adjusting my budgeting spreadsheets accordingly. It also helps me see where I can voluntary trim back now.

If I do better, then the extra money is considered a bonus and is divided in half for my husband and I. If I don’t make the projection, then I have money set aside in an account to make up the shortfall.

]]> By: Jessie http://gailvazoxlade.com/blog/archives/1228/comment-page-1#comment-20438 Jessie Mon, 30 Nov 2009 15:55:00 +0000 http://gailvazoxlade.com/blog/?p=1228#comment-20438 @ silverss - I have heard and seen many similar stories to this all coming from the US and have often wondered the same thing. Everything I have looked into and heard gives the answer "no - you cannot do the same thing in Canada". Coupons are just not created the same here as they are down South. Unfortunate but true. @ silverss – I have heard and seen many similar stories to this all coming from the US and have often wondered the same thing. Everything I have looked into and heard gives the answer “no – you cannot do the same thing in Canada”. Coupons are just not created the same here as they are down South. Unfortunate but true.

]]> By: All In One Information » An Unpredictable Income « gailvazoxlade.com http://gailvazoxlade.com/blog/archives/1228/comment-page-1#comment-20436 All In One Information » An Unpredictable Income « gailvazoxlade.com Mon, 30 Nov 2009 15:44:34 +0000 http://gailvazoxlade.com/blog/?p=1228#comment-20436 [...] the rest here:  An Unpredictable Income « gailvazoxlade.com This entry is filed under Art, Income. You can follow any responses to this entry through the RSS [...] [...] the rest here:  An Unpredictable Income « gailvazoxlade.com This entry is filed under Art, Income. You can follow any responses to this entry through the RSS [...]

]]> By: psychsarah http://gailvazoxlade.com/blog/archives/1228/comment-page-1#comment-20435 psychsarah Mon, 30 Nov 2009 15:38:08 +0000 http://gailvazoxlade.com/blog/?p=1228#comment-20435 Thanks for the great practical tips and the fable to illustrate it so well! We are considering an entrepeneurial opportunity for my husband, and this will inevitably lead to the inconsistency you're describing above. I've gotten so used to a set income and systematized our finances accordingly, so there will surely be a period of adjustment if he pursues this opportunity, but I think being on the "Gail program" for a while now will help us a lot, as we have a really good sense of what our expenses are, and we have saved and eliminated much of our debt (just a car loan and mortgage left to deal with). Thanks for the great practical tips and the fable to illustrate it so well! We are considering an entrepeneurial opportunity for my husband, and this will inevitably lead to the inconsistency you’re describing above. I’ve gotten so used to a set income and systematized our finances accordingly, so there will surely be a period of adjustment if he pursues this opportunity, but I think being on the “Gail program” for a while now will help us a lot, as we have a really good sense of what our expenses are, and we have saved and eliminated much of our debt (just a car loan and mortgage left to deal with).

]]> By: silverss http://gailvazoxlade.com/blog/archives/1228/comment-page-1#comment-20434 silverss Mon, 30 Nov 2009 14:53:55 +0000 http://gailvazoxlade.com/blog/?p=1228#comment-20434 Good post Gail. I am going through this now as my work contract will not be renewed. (I'm currently at your #6 remark.) I have a safety net in which I built. I've been tempted to use on a new bedroom set, painting the home, etc. but I could not risk this especially as I am a single dad of 3. Side note...have you seen this video feature? I wonder if you can comment on the feasiblity of this for the Canadian market? http://abcnews.go.com/GMA/Parenting/mom-feeds-family-week/story?id=8463295 Good post Gail.

I am going through this now as my work contract will not be renewed. (I’m currently at your #6 remark.)

I have a safety net in which I built. I’ve been tempted to use on a new bedroom set, painting the home, etc. but I could not risk this especially as I am a single dad of 3.

Side note…have you seen this video feature? I wonder if you can comment on the feasiblity of this for the Canadian market?
http://abcnews.go.com/GMA/Parenting/mom-feeds-family-week/story?id=8463295

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