Gretchen is hired as a sales person, and her base salary will be minimum wage. However, she will earn a $200 commission for every sale she makes. Her new boss let her know that most salespeople at this firm average 8-10 sales a week except for the month of January when sales drop dramatically and do not pick up until mid- February or early March. How will this impact Gretchen's personal budget?
• She cannot create a budget since her earning will vary a lot.
• She should create a budget when she can live on minimum wage.
• She needs to save money for the weeks when commissions are low.
• She should assume that she will earn eight commissions a week all year.
• She needs to save money for the weeks when commissions are low.
Gretchen should create a budget that takes into account her fluctuating income by saving money during the slower months when sales drop dramatically. By setting aside some of her higher commission earnings during peak selling times, she can ensure that she has enough to cover her expenses during the slower months when her income is lower. Planning ahead and saving for the leaner months will help Gretchen avoid financial stress and instability.