Two Ways to Budget If You Have an Irregular Income
Budgeting gets tricky if you don’t have a steady income every month, whether you’re a freelancer or occasionally earning extra income. There are several ways to create a reliable and balanced budget, even if your income fluctuates .
As we mentioned earlier, you can track your income from month to month and use a budget for the month ahead . Black Enterprise, however, recommends looking at your income over the past 24 months to create a baseline average income for your budget, setting aside any additional money you earn each month to make up for deficits in other months.
Alternatively, you can create a budget based on the lowest income you have earned in the last 24 months and use that as your minimum budget, making sure all your expenses are within that amount.
The most important thing, besides a realistic estimate of your income, is to set aside the “extra” money for the future.
Budgeting Viable with Irregular Income | Black enterprise