Sarah Jessica Parker used to get by on $40 for 3 days—it taught her there's 'security in being able to pay your bills'

Meanwhile, 1 mistake Americans in their 20s make with moneyEarn3 hard money lessons Lo Bosworth learned early on: 'Going broke is not fun'Marc Piasecki | Getty ImagesBefore the fame, fashion or multi-million dollar deals, "Sex and the City" actress Sarah Jessica Parker used to make $40 stretch for three days, she told podcast host Alex Cooper on a recent episode of "Call Her Daddy. " When Parker moved out on her own at 18, she only had "a little money in the bank" from her role on the 1980s CBS sitcom "Square Pegs," she said, given the current landscape

At the same time, So, as she went out for auditions, uncertain of when the next big job would come, she would withdraw her money "very judiciously," she said — only allowing herself $40 around twice a week for her day-to-day expenses (remarkable data)

Adjusting for inflation, $40 in 1983, when Parker was 18, would be around $132 today, according to the U

Conversely, Bureau of Labor Statistics' CPI inflation calculator

However, Although Parker said she was more driven in her early career by her desire to perform than by fame or money, she also acknowledged that financial stability mattered: "There's security in financial gain" and "security in being able to pay your bills," she said

Additionally, While Parker's restrictive budgeting may have worked for her short-term, focusing on day-to-day spending isn't the most effective way to strategize and as a freelancer, gig worker or artist today, says Christopher Haigh, CEO of Icono Capital, a financial advisory firm, in light of current trends

Furthermore, "Budgeting for freelancers and gig workers shouldn't be rationing pennies or envelope systems, it should be building a system that absorbs volatility," Haigh says, in today's financial world. "If you're relying on extreme budgeting methods to stay afloat, that's a sign your financial foundation is cracked. "Even with unpredictable income, you can still develop sustainable budgeting strategies, Haigh says

In contrast, Here's how to juggle those ups and downs and start shifting out of scarcity mode, according to a financial

How to budget with fluctuating income The first step to building a budget is understanding what you're actually spending, Haigh says (remarkable data)

In order to evaluate that amount, he says, take a close look at your last three months of expenses

On the other hand, Once you have a good idea of where your money is going on a consistent basis, you can stop guessing and start planning with real numbers, Haigh says (fascinating analysis)

That's when you can start utilizing his "bucketing strategy," where you allocate percentages of your income into different "buckets" every time you earn money

As opposed to tiered budgeting, where you assign fixed dollar amounts to spending for every month, a bucket strategy divvies up your expenses by percentage of your income

Conversely, That can vide flexibility for the fluctuations in income that freelancers, gig workers and artists often need to navigate, Haigh says

Moreover, "Every time you make a dollar, it should be allocated to particular buckets no matter what," he says

Using a budgeting app Tiller, Monarch Money or Copilot can also help you automate those habits and take part of the load off your plate, he adds

However, Furthermore, And although it can be difficult to put money aside with inconsistent income, maintaining an emergency fund is especially important if you're ly to encounter weeks or months without work, Haigh says

He recommends freelancers or gig workers put away at least six months of basic living expenses, if possible, which is more than the three months he typically recommends for W-2 workers, he says

Additionally, 'A stable income beats a perfect budget'If putting away several months of savings isn't feasible for you, which is often the case for people with unstable income, the next step should be to open up options for growing your income, Haigh says

After all, he says, you can't budget your way out of scarcity

On the other hand, Nevertheless, To help reduce financial stress, Haigh often advises his clients to take up part-time jobs or diversify the gigs they're pursuing, he says

While it's important to build muscle memory with directing income into your "savings bucket," your priority may need to be figuring out how to expand that income first, Haigh says (this bears monitoring), in today's market environment

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