{"id":15175,"date":"2025-12-16T15:59:38","date_gmt":"2025-12-16T21:59:38","guid":{"rendered":"https:\/\/www.discover.com\/online-banking\/banking-topics\/?p=15175"},"modified":"2026-02-04T16:27:28","modified_gmt":"2026-02-04T22:27:28","slug":"4-tricks-for-budgeting-on-a-fluctuating-income","status":"publish","type":"post","link":"https:\/\/www.discover.com\/online-banking\/banking-topics\/4-tricks-for-budgeting-on-a-fluctuating-income\/","title":{"rendered":"4 tips for budgeting on an irregular income"},"content":{"rendered":"\n

Irregular income refers to earnings that fluctuate from month to month and don\u2019t follow a predictable schedule. If you have an irregular income, you know how great the good times feel\u2014and how difficult the lean times can be. While you can\u2019t always control when you get paid or the size of each paycheck if you\u2019re a freelancer, contractor, or gig economy worker, you can take control of your money by brushing up on some budgeting basics<\/a> that will help you manage these financial extremes.<\/p>\n\n\n\n

Antowoine Winters, a financial planner and principal at a financial planning firm, says creating a budget with a variable income can require big-picture thinking. You may need to spend time testing out different methods when you first start budgeting, but, \u201cif done correctly, it can really empower you to control your life,\u201d Winters says.<\/p>\n\n\n\n

How do you budget on an irregular income? Consider these four strategies to help you budget with a variable income and gain financial confidence:<\/p>\n\n\n\n

1. Determine your average income and expenses<\/h2>\n\n\n\n

If you want to start budgeting on a fluctuating income, you need to know how much money you have coming in and how much you\u2019re spending.<\/p>\n\n\n\n

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Of course, that\u2019s the basis for any budget. But it can be particularly important if you\u2019re trying to budget on an irregular income because you may have especially high- or low-income periods. You want to start tracking as soon as possible to build up accurate data on your average income and expenses.<\/p>\n\n\n\n

For example, once you have six months\u2019 worth of income and expenses documented, you can divide the total by six to determine your average income and expenses by month.<\/p>\n\n\n\n

Many budgeting and spending apps<\/a> can help with the tracking, including ones that can connect to your online bank<\/a> and credit card accounts and automatically pull in your transactions. You may even be able to pull in previous months\u2019 or years\u2019 worth of data, which you can use to calculate your averages.<\/p>\n\n\n\n

If you\u2019re budgeting on a fluctuating income and apps aren\u2019t your thing, you can use a spreadsheet or even a pen and notebook to track your cash flow. However, without automated tracking, it can be difficult to consistently keep your information up to date.<\/p>\n\n\n\n\n\n\n

2. Try a zero-sum budget<\/h2>\n\n\n\n

If you\u2019re figuring out how to budget with irregular income, one of the most effective strategies is the zero-sum budget. This method helps you allocate every dollar toward a purpose\u2014whether that\u2019s bills, savings, or goals.<\/p>\n\n\n\n

\u201cThere are several strategies you can use to budget with an irregular income, but one of the easiest ones is the zero-sum budget,\u201d says Holly Johnson. As a full-time freelance writer, she\u2019s been budgeting with a variable income for years and is the coauthor of a book about getting out of debt.   <\/p>\n\n\n\n

With a zero-based budget<\/a>, your income and expenses should even out so there\u2019s nothing left over at the end of the month. The trick is to treat your savings goals as expenses. For example, your \u201cexpenses\u201d may include building an emergency fund<\/a>, vacation, or homeownership.<\/p>\n\n\n<\/div>\n\n\n

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“There are several strategies you can use to budget with an irregular income, but one of the easiest ones is the zero-sum budget.”<\/p>\n