Desperate Housewife, via email.

A: Many small business owners and salespeople working on commission have a variable income, which makes it hard to manage a budget - especially if you have little savings or are living on credit. The key is to have an emergency fund.

Essentials first:

When developing a budget, work out your monthly essentials, such as the mortgage, utilities and basic food. Use the first money that comes in each month to cover these bills.

Forget about luxuries while you get your finances under control.

Instead, use extra money to pay off debts and start your emergency fund.

Emergency fund:

Have enough money to cover six months of essentials. If you have no money coming in for longer than that, you should consider a second job.

You're likely to have good months when your income will cover your essentials and a few luxuries, average months where your income covers your essentials with a bit left over for luxuries, and bad months when you have little or no money coming in.

During these bad months, dip into the emergency fund to cover your essentials and go without luxuries. Then top up the emergency fund next time you have a good month.

Earning more:

Still struggling to make ends meet? Contribute to the family income by making some money on the side, such as by cooking for a local deli or altering clothes. You just have to think about where your skills lie.

For more great financial advice from David Koch, check out the latest issue of New Idea on sale now!