Budgeting on a Variable Income: How to Create Stability in an Unpredictable Paycheck

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If your income fluctuates from month to month — whether you’re a freelancer, gig worker, commission-based employee, or self-employed — budgeting can feel like a moving target. Some months it may be easy to make ends meet, while other months, no matter how far you stretch — those ends aren’t going to come anywhere close to one another.

So how do you budget when you don’t know what’s coming next? That’s where You Need a Budget (YNAB) comes in.

YNAB isn’t just about tracking money. It’s about creating a flexible spending plan that can adjust with you as you live your life. It’s a great tool for helping you keep track of upcoming expenses and plan for the future.

If you’ve read article on YNAB for small business owners, you know that I recommend budgeting based on what you HAVE — not what you expect. That’s just as true when you have a variable income.

Here’s one way to set up a budget in YNAB that smooths out the highs and lows of your unpredictable paycheck. If this doesn’t work for you, but you need a budget that does, reach out and schedule a 1-on-1 chat with me.

Step 1: Get Clear on Your Fixed and Flexible Expenses