Moneywise On Oneplace.com

If you’re self-employed, a contractor, or a small business owner, you’re probably familiar with the ups and downs of variable income. In some months, your earnings may exceed your expectations, while in others, they may fall short. This makes budgeting a little more complex—but not impossible! Let’s walk through how to create a budget tailored to your fluctuating income.Start by Finding Your Average IncomeThe first step is to look at what you know. Review your income from the past six to 12 months and total it. Then, divide that total by the number of months to find your average monthly income. This figure will serve as the foundation for your budget, helping you set realistic expectations. You’ll make more than this average in some months, and in others, you'll make less. That’s okay—as long as you plan for it.Save Excess Income for Lean MonthsHere’s the critical piece: In the months you earn more than your average, save the excess. This savings will buffer those lean months when you don’t meet your income t