Monday, August 23, 2010

Looking for advice from those of you whose income varies by season?

My husband is getting moved from motorcyle parts to motorcycle sales which is great for the higher earning potential, but I also understand the earning is very high in the summer, and very low in the winter. I don't want to make the mistake of not saving enough to get through the winter.





What percentage of his summer income should we tuck away into savings to get us comfortably through the winter?





I know this will be easy to calculate after he works in sales for a full year, but right now we just have to make our best guess.Looking for advice from those of you whose income varies by season?
You can't make a 'best guess' without knowing, but you can make a conservative estimate.





Put 50% of your summer money away to live on during the winter. I know that sounds like a lot, but next year, you'll have a better idea of what you'll need to save.Looking for advice from those of you whose income varies by season?
I'd save close to 100% of his ';raise'; until you get a better grip on what his income might look like during the cold months.





In other words, if he was making $3,500 a month and with the new job he brings in a nice $5,500 commission check, then I'd put $2,000 aside that month. I would very much recommend keeping a separate bank account to ';sweep'; the commission checks into.
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