There are two types of earnings for people that still live with their parents: 1) Inside the house, and 2) Outside the house. There are also gifts, which are regular, like your birthday, Christmas, and Thanksgiving, but are uncertain because you don’t know how much money you’re going to get.
There also the irregular and uncertain types of gifts, such as graduation, and marriage. So your best bet for a steady income is an allowance. The stability of your income depends on how you spend. If you don’t get your income that often, you shouldn’t spend often. But if you get it, oh, every week or so, then you can spend a little more freely.
You also want to keep your consumption steady. The more you can minimize your consumption, the less you have to pay. The windfalls that you get can be saved, spent on tools, or used to help start your business. Your regular income can be used for consumption, not your windfalls.
Now, onto the outside earnings. It can be stable-or not. For example, is your job seasonal? If you work at an ice cream parlor than yes. But if you’re the usher at a movie theater, than no. Is your job based on commission? If so, then you might have times when you randomly have more or less income, so saving is a priority.
What’s the chance that your job hours will be reduced? If they will be, then you have to spend less so that you get used to having less. And finally, if you have a business, do you have enough history to tell you when you’re going to have ups and downs?
Now some general tips, you want to stash your large gifts. Don’t touch them. There are many stories in which lottery winners spend everything within a few years. You also don’t want to brag about it, for the obvious reason, and get advice on how to spend it correctly.
Lastly and finally, when you get large cash sums, you want to think about how you can produce something with that money, instead of just spending it all.
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