This NebGuide describes how families with an irregular income can control living expenses through use of a budget and cash flow plan. Although farm and ranch family living levels have improved and become more comparable to nonfarm families, there will always be some important differences between these families with respect to managing the family living expenses. This guide is designed to help the farm or ranch family take control of family living expenses by sharpening managerial skills. Farmers and Ranchers are Unique Farm and ranch income is irregular and uncertain.
Uncertainty is common for most self-employed people, and especially for agricultural producers.
These costs are considered business expenses rather than family living expenses. Food expenditures are lower for families that produce some food for their own use. Raising meat, fruit, or vegetables for home use can cut grocery bills considerably. Adequate insurance protection is usually more costly as there is no employer to pay a portion of the insurance premiums. And, the need for insurance is magnified because agricultural producers face a greater risk of injury, disability, or death.