It may come as a shock (or not) that many jobs in the United States are in the service industry, and even less of a surprise is that they are among the lowest-paying jobs in the country.
With this in mind, how exactly are you supposed to save money for your short or long-term goals when the only break you see is in the form of inconsistent tips?
Above all else, a basic budget outline of your expenses will give you an idea of what you need to have to cover your expenses.
Ideally, it would help if you set aside 15% of your earnings, but it’s best to aim for a higher amount. Making tips means paying tax on anything above the federal minimum (about $2.13 per hour), so being ready for tax season will prevent you from having a huge bill from Uncle Sam later.
If you receive cash tips, bank larger bills to pay your monthly expenses. Conversely, keep the smaller bills on hand to pay for your incidentals. You’ll be more cognizant of your spending if you watch your wallet drain itself in front of your eyes.
And hey, the change from these purchases? Throw it into a jar at home. That adds up really quickly! You’d be surprised how much you can save that way. You can also put away your $1 bills in the same fashion.
Naturally, this won’t work for everyone as pay structures, and situations vary from person to person.
The point is that even with inconsistent pay, it is possible to save money! If you’re looking for ways to make your tips work for you, come and talk with us! You can reach us at 385-787-1157, or you can schedule your complimentary phone call below.
