Comments on: Variable Income? You Need a PLAN!

By: Cas

Cas — Sun, 28 Feb 2010 14:09:05 +0000

My husband is also considered a ’seasonal worker’ but for the past while, we have been blessed with him working without a lay-off. Due to the fact that that is always a possibility, and remembering when we have been in very tight times before, we tend not to spend a lot of our income. However, when our income becomes the tightest, (his hours decrease, or he has to take a job at 85% of his income), that is when I go out on a spending spree! I know, it doesn’t make sense. I guess my reasoning is, to prove that we’re okay, and are going to be okay. I don’t spend on credit, it’s covered, and once it’s out of my system, I am good to go back to our usual thrifty habits. At work, I once even got the “Get Laid” award — my husband got laid off, and I went and bought a ‘new’ bedroom set. Nuts, and I know it’s nuts, but, it hasn’t gotten us into trouble yet, and I’ve had no regrets….

By: Sorrells

Sorrells — Wed, 09 Dec 2009 17:54:39 +0000

Damn, I just posted this huge comment and then when I clicked submit the dang page when all white, does this mean I have to type it out all over again guys? I hope it’s not lost for good, that took me a long time to type out…uhhh.

By: Erin

Erin — Thu, 05 Mar 2009 16:40:56 +0000

Some of this information is helpful for my husband’s situation, but he is a seasonal worker with a bit of self employment on the side. He’s in the construction business, like many others are, and also does some guitar technician work on the side. He’s usually laid off for about four months in the winter. If you get a chance to write a blog on seasonal workers, I would love it!

Thanks for all your great advice!!

By: PaulG

PaulG — Thu, 11 Sep 2008 17:31:47 +0000

As a freelancer with very low overhead costs, I’ve found my biggest financial challenge to be setting aside sufficient tax money *in years when my income increases significantly.*

After faithfully paying quarterly installments based on my most recent tax return, and trying to set aside enough to cover the tax on the additional income (*and* keeping RRSPs maxed out to soften the hit — using even more cash flow in the process), I’ve found myself whacked at year’s end more than once, though fortunately without taking on debt for more than a couple of months.

In other words: Even though I knew a big tax bill was coming on April 30 I kept underestimating just how big it would be. This year should bring another increase, so we’ll see if I manage to prevent the problem this time. I am trying!

If your annual income ever plateaus, it should become second nature to keep tax accounts in perfect standing: there’s really no excuse to be caught short on an installment due date or April 30. If it’s growing, take more time than I did to figure out how much extra you’ll need…and set it aside.

By: Tracy J

Tracy J — Thu, 11 Sep 2008 15:36:46 +0000

I am a freelance Grapic Designer. I work from home and my overhead is basically phone, high-speed internet, a website and the occassional software or hardware upgrade. Not too bad really.
I have done MOST of the things listed here. I figured out what my minimum income should be to cover business and home needs, and I only draw a small wage from the business (ensuring things like upgrades and taxes are well covered). The only thing I was surprised about is the saving thing you mentioned. I have been putting away a minimum of 10% of my business’s net income every month…. so on lean months it isn’t much and on booming months it is more. After the taxes are all settled, I usually slap a bit more into long-term savings or even a lump sum mortgage payment if the year was particularly generous.
(note: My husband has a steady salary, so he is the one that puts the regular pre-auth RRSP contributions in, I just top it up with my 10% whatever that amount may be.)