Budgeting on a Seasonal Income Using a Savings Account in Henderson
When you have seasonal income, budgeting for the entire year is of the utmost importance. After all, for a portion of the year, you'll have no income coming in. That being said, if you plan accordingly, budget appropriately and make good choices, such as opening a savings account in Henderson, you won't have to stress about it.
Figure Your Average Monthly Income
Knowing your average monthly income makes budgeting throughout the entire year much easier. In order to determine this amount, take your total amount earned, post tax, for the last several years and divide it by the total number of months. If you foresee hard economic times ahead for your particular industry, deduct between 15% and 20% from your monthly average income.
Determine Your Average Monthly Expenses
Now that you have calculated your average monthly income, it is also important to determine your average monthly expenses. Your monthly expenses might vary based on whether or not you are working. For instance, when you are working you might spend more on gas or office supplies. To figure out your average monthly expenses, add up both your personal and work expenses for an entire year and divide by 12.
Tweak Your Budget
To determine your baseline budget, take your average monthly expense amount and subtract it from your average monthly income amount. If you find you’re spending more than you are making, adjustments should be made. For instance, you might want to cut unnecessary expenses or get a part-time job when you are not working your seasonal job.
Open a Savings Account
Opening a savings account in Henderson is a great way to save money for when you need it. Regardless of whether you're saving for an emergency, a vacation, or to buy Christmas presents, it is nice to have some extra money stocked away. Try to save a minimum of 10% of your income, but if you can't realistically do this, even depositing small amounts can quickly add up.
Christmas/Vacation Club Savings Account in Henderson
At Clark County Credit Union, there are saving options, such as Christmas / Vacation Club to help you budget appropriately. With these accounts there is a 0.15% annual percentage rate and 0.150% annual percentage yield. Make note, these funds are paid out on an annual basis, with the Christmas Club being paid out on November 1st and the Vacation Club paying out on May 15th. They are great ways to save for vacations and Christmas gifts.
If you'd like to open a savings account in Henderson, please don't hesitate to contact Clark County Credit Union at 702-228-2228 to get started saving today!