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My point was that with greater volatility, a smaller portion of income remains sufficiently consistent, and thus the line will be lower and the budget will be s
by abalashov 9y ago
My point was that with greater volatility, a smaller portion of income remains sufficiently consistent, and thus the line will be lower and the budget will be smaller.
- Consultant32452 9y agoI don't think you would feel that way if you actually read the book and followed a real written budget. I know this because I've lived it myself. The only difference between variable income and static income is gauging the size of your emergency fund. Otherwise, your budget is identical.
- abalashov 9y agoYes, but maintaining a bigger emergency fund implies spending less in other categories. :-)
- Consultant32452 9y agoNope. Building an emergency fund implies spending less in other categories, namely retirement savings. But once you've made those initial, temporary sacrifices, maintaining the emergency fund doesn't cost any more just because you have variable income.