The United States Department of Labor (DOL) has identified 15 million Americans who are self-employed. The DOL economic news release may be found here. If you are self-employed, you experience income that fluctuates or comes in at different times. You probably wonder how to live by a budget.
Envision your plan and take 3 steps. First, determine your lowest paid month from the previous year and make that amount of income your base line. Next to that income, list all your monthly expenses in priority order (rank food, shelter, clothing and transportation as most important). Now you should have a bare-bones budget.
Second, plan for income that may come in over your lowest estimate. If you expect $100 more this month, assign that $100 to the next priority on your list of expenses or debts. Third, use any new money to pick up where your last paycheck left off. Just remember to go down your list of expenses and debts and stick with the plan, even though you may be tempted to go out to dinner.