How to Budget When Your Income is Unpredictable

Sarah Brumley

Sarah Brumley

Do you ever feel like your paycheck is a total guessing game? One month, you’re feeling great, and the next, you’re wondering how you’re going to cover the bills. If your income isn’t predictable—whether you’re a freelancer, a seasonal worker, or earning on commission—you know how stressful that rollercoaster can be.

But here’s the good news: you can budget successfully, even when your paycheck isn’t the same every month. In today’s episode, I’m breaking down six practical steps to help you create a budget that actually works—so you can stress less and feel more in control. Sound like something you need? Well then let’s get started!

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How to Budget When Your Income is Unpredictable

Well hey there, and welcome back to the Financial Fix Up Podcast! I’m your host, Sarah Brumley, and if you’ve ever felt stressed about budgeting because your income is all over the place—well, you are definitely not alone.

Maybe you’re a freelancer, a seasonal worker, or your paycheck depends on commissions. Some months, you feel on top of the world, and other months, you’re wondering how you’re going to pay the bills. It’s frustrating, stressful, and—honestly—traditional budgeting advice just doesn’t cut it when your paycheck isn’t predictable.

That’s exactly why today’s episode is for you! We’re talking about how to budget when your income fluctuates—how to create a plan that actually works, helps you avoid those feast-or-famine cycles, and gives you peace of mind no matter what your paycheck looks like this month.

And I actually have six step to help you do just that. And here’s the thing—having an unpredictable income doesn’t mean you have to live paycheck to paycheck forever. You just need a different strategy than someone with a fixed salary. So let’s break it down, step by step, starting with the foundation of any good budget—your bare minimum expenses.

Step #1: Determine Your Bare Minimum Budget

The first thing we need to do is figure out your absolute bare minimum budget. This is the amount you need to survive each month. We’re talking about the essentials—the non-negotiables:

  • Rent or mortgage
  • Utilities (like electricity, water, internet)
  • Groceries (not dining out—just the basics)
  • Transportation (gas, car payment, bus fare)
  • Insurance (health, car, anything critical)
  • Minimum debt payments (if you have them)

Go ahead and add those up. That number? That’s your baseline—the amount you absolutely must have every month to keep things running.

For example, if all of your essential expenses add up to $3,000, that’s your survival number. You need at least $3,000 to make it through the month without financial stress.

Once you know that number, it becomes your priority—because no matter how much your income fluctuates, covering those essentials comes first.

Step #2: Build an Emergency Buffer

Now, because your income isn’t consistent, a safety net is non-negotiable. You need an emergency buffer to help cover those low-income months.

I know, I know—everyone talks about emergency funds, and it can feel impossible to save when money is tight. But trust me, this one is worth prioritizing.

Ideally, you want to have at least one month’s worth of essential expenses saved up. So if your minimum budget is $3,000, your goal is to stash away $3,000 in a savings account that you don’t touch unless absolutely necessary.

Pro tip: Keep this money in a separate account—not your checking account where it’s easy to spend. Make it slightly harder to access so you only use it when you really need to.

The best time to save? When you have a high-income month. Instead of splurging, set some of that extra money aside so you don’t end up scrambling when things slow down.

So that’s step 2 – build that emergency buffer. On those low-income months, you’ll be so happy you did.

Step #3: Use a Two-Tier Budget System

Step 3 is to use a two-tier budget system and now that we know your minimum budget and you’re working on a buffer, it comes down to how to actually manage your budget from month to month.

And a two-tier budget system is one of the best ways to handle unpredictable income. Here’s how it works:

  • Tier 1: This covers only the essentials—the things we talked about earlier (housing, food, utilities, etc.).
  • Tier 2: This is where all the extras go—things like eating out, entertainment, subscriptions, saving for fun purchases, extra debt payments.

The key is to adjust based on your income. So, if you have a lower-income month, you stick to Tier 1. If you have a great month, you fund Tier 1 first, then add in Tier 2 expenses.

Think of it like a priority list—Tier 1 gets funded first, always. Then, if there’s extra, you can enjoy some of those Tier 2 things.

Step #4: Pay Yourself a Set Salary

Step 4 in this process is to pay yourself a set salary. And what I’ve noticed as one of the biggest mistakes people make with fluctuating income is that they spend everything in the high months and then panic in the low months.

But there’s a better way: pay yourself a set salary.

Instead of spending based on how much you make each month, decide on a set amount to “pay yourself” from your earnings.

For example, if your average income is $4,000 per month, but some months you make $6,000 and others you make $2,000, set your monthly salary at $4,000.

When you make more than that? Put the extra into your buffer fund. When you make less? Pull from that buffer to cover the difference.

This helps you avoid the highs and lows and creates stability in your finances.

Step #5: Plan Ahead for Slow Months

The next step to take is to plan ahead and you’re probably like, well isn’t that what we’ve been doing to this point – and you’d be right, but if you’ve been working a job with fluctuating income for a while, you probably have noticed some patterns. Maybe you always make less in January and February but more in the summer.

Use that knowledge to plan ahead.

  • Start saving in your high-income months so you’re prepared for the slow season.
  • Cut unnecessary spending before the low-income period hits.
  • Think ahead for things like holidays, annual expenses, and big purchases—don’t let them sneak up on you.

Tip: If you know your income slows down every winter, start putting money aside in the fall so you’re not caught off guard.

Step #6: Find Ways to Create Stability

If your income is really unpredictable, one of the best things you can do is find ways to create more stability so you’re not constantly stressing about money.

  • Can you add a part-time job or side hustle to bring in some consistent income?
  • Can you set up retainer clients or ongoing work so you always have a baseline amount coming in?
  • Can you diversify your income streams so you’re not relying on just one source?

Even small changes—like picking up a few extra hours at a side job or offering a service on a recurring basis—can make a big difference in smoothing out the highs and lows.

And that’s really the goal, right? To make sure you’re not living in that constant cycle of feast or famine, but instead creating a system that keeps you financially secure no matter what comes your way.

How Will You Budget Your Unpredictable Income?

So there you have it—six key steps to budgeting when your income isn’t consistent. I know it might feel overwhelming at first, but remember, you don’t have to implement everything all at once. Small changes add up over time, and the goal is to create a system that gives you peace of mind, no matter what your paycheck looks like.

Alright, let’s recap real quick:

✔ Figure out your bare minimum budget

✔ Build a buffer fund to protect against low months

✔ Use a tiered budget system to prioritize spending

✔ Pay yourself a set salary to create stability

✔ Plan ahead for slow seasons

✔ Look for ways to add consistency to your income

I know that managing an unpredictable income takes effort, but it’s totally possible. With a solid plan, you can avoid financial stress and create stability—even when your paycheck isn’t consistent!

So, before you move on with your day, I want you to take five minutes to write down your bare minimum budget. Just grab a piece of paper or open your notes app and list out those essential expenses. It’s the first step toward gaining control of your finances—even if your income isn’t predictable. And if you need a little help, make sure to grab your copy of the Financial Fix Up Planner. You can get yours at lemonblessings.com/planner.

Whatever you decide, just know that I’m cheering you on! You’ve got this! Have an amazing day, and I’ll chat with you again next time!

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