Handling Irregular Income
Budgeting That Works · 13 min
Lesson
In progress
If income varies month to month, budget from your lowest expected month, not your average.
Build a 'income buffer' of one month's expenses so this month's spending is funded by last month's income.
Prioritize essential categories first, then allocate any surplus to savings or debt.
Key takeaways
- Budget to your lowest expected income.
- A one-month buffer smooths irregular pay.
- Fund essentials first, then flex categories.
Glossary
- Income buffer
- A cash cushion that lets you spend this month using last month's income.