Budgeting gets tricky when you don’t have a consistent income every month, whether you’re a freelancer or occasionally make side income. There are a few ways you can still create a reliable and balanced budget even when your income fluctuates.
As we’ve mentioned before, you can track your income month to month and use a month-ahead budget. Black Enterprise, however, recommends looking at your last 24 months’ worth of income to create an average income baseline for your budget, setting aside any additional money you make each month to make up for shortfalls in other months.
Alternatively, you can create a budget based on the lowest income you’ve earned in the last 24 months and use that as your bare minimum budget, making sure your expenses all fall within that amount.
The most important thing, besides having a realistic estimate of your income, is to set aside any “extra” money for the future.
Making a Viable Budget with Irregular Income [Black Enterprise]