Most of us have variable income every month, whether or not we realize it. This type of income might come from:

• Hourly wage work
• Gigs
• Gifted money
• Commission work

If the money is going into the accounts you’re tracking in your budget, you should record the income and assign it in your budget.

Budgeting with a variable income is simple in principle: Only budget the money you have.

When you record income, you can assign it to this or next month. If you still need money this month to cover your spending, then you should assign your income to This Month.

Be careful not to assign more money in your budget than you have available to budget from your income. You may be aware that bills are coming, but if you do not have the money to cover them at this moment you should wait to fund those budget categories until you receive additional income.

Being overbudget must be resolved in the current month, but overspending will carry over into the next month.