Budgeting on Irregular Income – How Do You Do It?

[SilverLance]

Budgeting with a steady paycheck is one thing, but when your income changes every month, it feels like a guessing game. How do you budget when your income changes month to month?

 

[Suba]

If someone has an irregular income or income that always changes every month but he wants to make a budget, then the first thing he does is record the income for at least the last three months, then calculate the average income and consider this average as a fixed income. Then arrange the spending budget based on the priority of needs, don't forget to make a post for emergency funds, savings and investments. don't be wasteful, throw away or reduce unnecessary expenses.

 

[magnus2022]

If someone has an irregular income or income that always changes every month but he wants to make a budget, then the first thing he does is record the income for at least the last three months, then calculate the average income and consider this average as a fixed income. Then arrange the spending budget based on the priority of needs, don't forget to make a post for emergency funds, savings and investments. don't be wasteful, throw away or reduce unnecessary expenses.

Your advise make sense. I will implement your idea. It sounds very okay.

 

[eLdavis]

What i simply do in cases like this is to wait till the money comes, once i have it in hand, i can simply start making my budget based on what i have in hand, then i save some extra for the next month to support whatever i get the next month.

 

[Suba]

It is okay to make a budget based on actual income, but it will be troublesome if the income received is not on the same date, which means the budget is not sufficient for one month or conversely there are excess days. which means there are days that are not included in the budget.

 

[Springtime]

I am a freelancer. Hence, my income per month is not stable. But I can estimate the average amount I earn. I make my budget based on my estimated average income. If my income in a particular month fluctuates a lot, I adjust my budget accordingly.

 

[Augusta]

Try and determine your average income over a few months to have a baseline for budgeting. Then focus on essential needs like housing, food, and utilities, ensuring they are covered

 

[Nomad]

I have irregular income, when I am making budget I take a cue from previous months income and expenses.