How to Budget When Your Income Isn't Fixed
Freelancers, tipped workers, and commission earners can't run a normal budget — the input number changes every month. The baseline-method fixes this.
The baseline method
Calculate your bare-minimum monthly cost of living: rent, utilities, food, transport, minimum debt payments. That number is your baseline.
Every dollar earned above baseline flows down a priority waterfall: one month of baseline in cash, then three months, then debt above minimums, then goals. It removes the monthly guessing.
Paying yourself a salary
Once one month of baseline is banked, pay yourself a fixed ‘salary’ from your business or fallback account on the 1st. Income volatility stays in the holding account; your personal budget never sees it.
This single move converts chaotic income into a number a budget can actually use.
Common questions
How much should freelancers keep as a buffer?
One month of baseline. Three to sleep well. Six if your industry is seasonal.
Should I budget on projected income?
Never. Budget on money already in the account—projections are hopes with a spreadsheet.