How do I budget an irregular income?
Budgeting with an irregular income can be challenging. For freelancers, sales professionals, and others with fluctuating earnings, managing finances requires a different approach to maintain stability and predictability in cash flow.
We’re assuming that your income arrives in one or two primary accounts, such as a payroll or checking account. From these accounts, you make withdrawals based on your financial needs.
To help you manage your finances effectively, we created the Withdraw Funds feature.
Go to Budget
Click Add Funds
Click Withdraw Funds
Select the asset for withdrawal
Enter details
Click Budget my $XX.00.
Plan where your money will go.
Click Pay Myself if you want to:
Add money to your savings
Add money to a savings goal
Click Pay Expenses if you want to:
Pay off debt
Pay bills
Spend on personal things (e.g. gifts, self-care, self-development, clothing, vacation, etc.)
A few budgeting tips from the team:
While your income may be irregular, your expenses are likely more consistent. To manage this disparity, we recommend paying yourself a fixed monthly salary on a set schedule. This approach helps in several ways:
Predictable Monthly Budget
You can plan your expenses around a consistent amount each month.
Better Savings Management
Regular, predictable withdrawals allow for better savings and investment planning.
Reduced Financial Stress
Knowing when and how much you will "pay yourself" each month can reduce anxiety about fluctuating income.
By utilizing the Withdraw Funds feature and adopting a fixed-salary approach, you can gain better control over your finances, even with an irregular income.