As a waiter, you could earn $100 one night and zero dollars the next, which depends on whether your restaurant is busy and how much your salary or hourly wage job is. And you are never certain how much money you would make in a week or month. Even if such uncertainty could make working out and sticking to a budget very tricky, but it would be realized if you could follow a few tips in this regard.
1. To have a bigger picture.
By doing this, you should Keep track of your tips and earnings for a few months. After that, add up your earnings on a monthly basis, rather than a daily basis, which would keep prevent yourself from feeling destitute or overly flush, because one night you might earn several hundred one night but next evening, you could make none. Therefore, you actually need to have a bigger picture to work out your budget effectively. When you know clearly about your monthly income for three or four months, then you could work out the average for such months. In order to offer yourself an extra cushion, you might intend to subtract a few hundred from the average amount.
2. To establish an emergency fund.
During the year you might come cross lean times, such as a big snowstorm hit the town or everyone is on holidays. To face such issue, you should get ready for times when your salary is quite less than usual by the means of establishing a special savings account. You should put about five percent of your income into the account when business is good . You could only use the money in the account when it is absolutely necessary to do so, for example, for an real emergency or to make ends meet when the tips you get are not enough to support your daily life.
3. To be aware about your expenses.
Sometimes after a particularly good night, you might be tempted to go out and buy yourself a special treat. If you are sure about where your money should be spent, you would be less likely to go with it on frivolous items or at the after-hours bar. So you should work out a list of all your necessary monthly expenses, including housing costs, loan payments, groceries as well as utilities. If you are really intended to have an occasional treat, such as a night out or a new gadget, on this occasion, you should save some money in a “fun account,” However, you must be clear that your fun account should be a lower priority compared with your necessary expenses.
4. To remember the tax.
As a waiter, you have to pay taxes as well. Unluckily, it could be tricky for many waiters, because the taxes taken out of your paycheck might not cover all that you owe. Even if your paycheck is completely voided because of taxes, you should still set aside about 10 percent of your tips, just in case you end up owing money to the government come tax time. Avoid an audit by the IRS by reporting the entire amount you earn in tips, not just a small percentage. You might be capable of reporting your tips at the end of each shift when you clock out, or it might be necessary for you to fill out Form 4700 and submit the form to the IRS each month. It would offer the IRS an accurate portrait of your income and enable them to take out Social Security, Medicare and other taxes you owe.