Build a budget when your income changes: test your skills
Freelance, gig or commission pay? Plan on your lean month, park the extra and pay yourself a steady salary. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Find a lean-month baseline
- Pay yourself a steady salary from a holding account
- Set tax aside from every payment
- Practice
1. Which income figure should your essentials fit inside?
- Practice
2. What does the holding account do?
- Practice
3. In a good month, what comes first?
- Key idea
4. Which statement best explains "Plan on the lean month"?
- Key idea
5. Which statement best explains "Smooth income yourself"?
- Key idea
6. Which statement best explains "Tax money is not yours"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
Holding balance $1,500. Income: $3,800 then $2,200. Salary $3,000 each month. What is the balance after two months?
Show the answer
$1,500
$1,500 + $3,800 − $3,000 = $2,300. $2,300 + $2,200 − $3,000 = $1,500.
Find your lowest typical month of income in the past year and write it down as your baseline salary.
More tests in this bootcamp
- How to budget with the 50/30/20 rule
- How to build a zero-based budget in simple steps
- Sort your spending: fixed costs, flexible costs and choices
- Let your receipts reveal where your money goes
- Plan ahead with sinking funds
- Build a budget when your income changes
- Pause before you buy: manage impulse spending
- Keep more of your raise: avoid lifestyle inflation
- Make a monthly money check-in work for you
- Read your utility bill and find ways to use less
- Final exam: Budgeting and cash flow