What income would you use to base your budget?

**Libby** · 05-17-2010, 05:10 PM

LB - exactly my thought. I meant 'gravy' as in extra $ for savings, paying off more debt quicker and especially breathing room.

**Darlene** · 05-17-2010, 05:14 PM

Another vote here for treating it like gravy. Live below your means.

**mndtrp** · 05-17-2010, 07:52 PM

Budget off of base pay. OT and bonuses may or may not show up.

**mek42** · 05-17-2010, 11:09 PM

Originally Posted by Luckybustert

I would not include the OT because it's not guaranteed.....it could go away at any time. Also, by not including it you are learning to live on less now and that could prove useful if and when it is cut. I wouldn't count it as "gravy" or extra to be spent, though....I'd take the money made working OT and use it to pad my EF.

Or the debt snowball depending how far along the path you are. Maybe a special toy to celebrate a milestone, but willing to forego or postpone if the OT doesn't happen or isn't as big as thought.

**ladytoysdream** · 05-22-2010, 07:19 AM

We have always treated OT as extra.
Never base your budget on it. Use it for a snowball to get rid of debt. Or save it up and buy things as you need them and pay cash.

My hubby gets OT in the winter. This past winter's OT money is our EF. The winter before, we used the OT to buy a load of logs for the wood boiler furnace, and a used chainsaw.

Another thing I did for the budget was to set it up so our main bills would be covered by one income. Always leave yourself some wiggle room / a cushion in the budget. I don't believe in guaranteed OT or job security anymore. All it takes is a layoff, or a big medical problem to give you hardship in your budget.
I personally know 3 families that lost their houses last year. Could not make the payments. I also personally know another 3 families that had to let their grown up kids move back home.
Life is full of surprises and usually when we least expect them.

**Jethro33** · 05-26-2010, 02:21 PM

Libby - you could take it one step further than what everyone else is pretty much saying. OT is "Gravy". Pad your EF
Give it a purpose! Make a list of things you would like to accomplish if you came across extra money/OT $. List might include EF $$ increase, new TV, etc. When you make the list put approx. costs and prioritize the list. Its one of Dave Ramsey's ideas.