After working as a waitress for over 14 years, I know one of the hardest parts of being a server, bartender, or anyone that relies on tips to pay the bills is to stick to a budget. Always having cash on hand can be cool, but if you are trying to get ahead or have a family to take care of, it can be challenging to keep track of your money. So here are some budgeting tips for servers that have helped me handle expenses over the past 10+ years.
Affiliate Disclosure: This page may contain affiliate links to products or services. This means I may receive a commission for purchases made through these links. As an Amazon Associate, I earn from qualifying purchases. More information can be found in our Privacy Policy
Calculate bills/expenses for the month
This is the most important thing to do if you live off tips or other inconsistent income. Figure out your bills for the month and track the extra things that you spend money on each month.
Extra things can include groceries, gas, and entertainment spending. Do this for about three months to see exactly where your money is going. After that time, you should have a good idea of what is necessary and what is not.
Make a spreadsheet to track income and expenses
You can do this easily. Make a google or an excel sheet (there are other online places too).
First, keep track of your tips for three months and lowball the amount that comes in. This way if there is a slow period you can still make ends meet. If there is extra, put it into a savings account or towards a bill that needs to be paid down.
Next list the bills in the order that they are due/important. This will give you an idea of what you need each month to pay all your bills. For bills that might vary (electric, water, etc.) find the highest bill and use that to calculate the average of what it could be. If the highest is $200 try to budget as close to that as possible each month.
By doing this you can account for spikes in costs. If the bill is less, leave the extra in the envelope to roll over. That way if you do get hit with a larger than expected bill you already have a bit of cushion.
Related Reading: Christmas Savings Plan and How to Build a Savings Account
Cut out unnecessary spending
If you buy coffee every day or eat out on a regular basis try to make coffee at home before you leave the house. You can also buy pre-made iced coffee or cold brew that you can just add ice to.
This is the same for eating out. Eat a meal before you leave/wait till you get home. If you are too tired when you get home, look into meal planning so that you can just heat it up. This way you eat at home rather than getting food from work or stopping on the way home.
You can save a bunch of money by cutting out these smaller unnecessary expenses.
Use the envelope system for bills
This is one that I wish I had done in the past.
The basic idea is that you make an envelope for each bill/major expense and put a portion of your take-home tips into each day. (link)
If you go to the bank regularly use an app to keep track of the bills that you have made the money for and check them off when they are paid. Personally, I do this right in my spreadsheet like this
Save 15% for taxes if needed
The place I work takes taxes out of my pay so I don’t really have to worry about this. But it is a good habit to get into. Try to put 15% of each shift or week in a designated envelope for taxes. This way you don’t get a shock at tax time if you owe money.
Save the change
I have been doing this for years. All the change that comes across my path gets saved. I throw it in a container and roll it when it gets full (most of the time you can get empty change rolls from your bank for free too).
This way it adds up and gives you extra for unexpected expenses. There have been many years that this has saved my butt at Christmas time. It usually adds up to a few hundred dollars by the end of the year, and if I don’t use it, I just keep adding to it.
Save for holidays/back to school/vacations
Even if you don’t go with the envelope system, you can still have a few to put money in each week. By doing this you can put a goal amount on the envelope and put smaller bills into it to save money throughout the year for these expenses.
Related Reading: How to Make Better Tips as a Server and Practical tips to save money
Keep your money separate
Keep your spending money separate from bill money.
By doing this you can avoid accidentally spending what you need for bills.
I take my money out when I get home and put it away, then I leave myself about $10 each day for spending.
If I know that I need to get gas or groceries I only take the amount that is allotted for that with me so that I don’t overspend.
Side note– make a list for the store and stick to it so that you can avoid impulse buys.
Change in smaller bills for bigger ones
If you are able to, change out your $1’s, $5’s, and $10’s for larger bills.
I don’t know about you, but I hate to break a $20 at the store. This also keeps me from spending money that I shouldn’t.
This makes going to the bank easier too. It’s easier to make a large deposit with bigger bills than it is with a bunch of 1 and 5 dollar bills.
Final Thoughts
Creating a Budget and sticking to it is hard for most people. I think that it can be very challenging for servers, especially if you are not used to having an income that varies day-to-day.
Hopefully, you find these budgeting tips for servers helpful.
If there are other tips or tricks you know let me know in the comments!