QUESTION IMAGE
Question
what can you do to ensure that you live within your means if you have irregular income?
multiply your highest months earnings by 12 to get your annual income.
live within the average monthly income for the year.
assume youll earn more income.
spend as much as you earn each month.
Brief Explanations
- Multiplying the highest month's earnings by 12 overestimates income and is not sustainable for irregular income.
- Assuming more income is not a reliable or prudent strategy.
- Spending as much as earned each month doesn't account for months with lower income and can lead to financial instability.
- Living within the average monthly income for the year provides a more stable and realistic budget, allowing for savings in higher - income months to cover lower - income months.
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Live within the average monthly income for the year.