Busulis on How to Start Saving and Organise Money When Income Varies

In the TVNET podcast "Where Does My Money Go?", produced with the Bank of Latvia's Money School, musician Intars Busulis described how he tracks his money and plans ahead. The conversation also featured host and media personality Māra Sleja and Artis Zeilis, head of the financial literacy unit at the Bank of Latvia. They discussed how to look after tomorrow without giving up life today.

Keeping track of spending

Bank notifications about purchases help Busulis follow his money: he can say where it goes and knows his account balance. Still, he stresses that he does not consider himself someone who understands everything about finance. Zeilis too has months when he must review his expenses to understand why money ran out so fast, for example because a free trial ended or a payment was made automatically for a barely used platform.

Busulis began thinking more seriously about finances after his first child was born. He is now a father of four. Sleja said that after having a child, her work opportunities and income changed.

Variable income

Busulis's work is seasonal, so he notes upcoming jobs and assesses them over several months. Zeilis advises people with variable income to look at a longer period, since one good month does not show how much can be spent each month. A reserve for quieter seasons is also needed. Busulis wants a cushion that would let him get by for at least a year if necessary.

If essential expenses exceed income, that gap must be addressed first by finding where to cut costs or how to raise income. If even a small free sum can be found, there is no need to set aside a tenth of income. Zeilis mentions five or ten euros and stresses: "No saving is too small at the start."

Forgotten subscriptions and leisure

Busulis cites subscriptions as an annoying example: people forget them, but payments continue. Zeilis suggests reviewing several months of transactions and asking whether each service is still needed and used.

Leisure deserves a place in the budget: Busulis keeps a separate account for cinema, restaurants, travel and concert tickets. Zeilis notes that an overly strict budget can become unbearable. A specific name also helps a savings account, and Sleja has named hers "Peace".

Zeilis also recommends an automatic transfer, which removes the need to decide on saving every month. For someone with variable income, the amount should be one they can sustain even in a quiet month.