4. Understand your income

Once you calculate and know how much money you will make one particular month, then sit down and subtract out your expenses until you have gone through all of your money. It is important to remember to save anything you make over the amount of your full budget. If you are working on getting out of debt you may decide to put a percentage of up to fifty percent towards your debts with the extra money.

5. Prepare for the future

The main point about a variable income is that you have to prepare for the future. Try to fit your expenses into what you can count on most months. On months that you make more than that, set money aside in a high yield account. That way, if a project falls through, and you make less than your average, you can draw on your reserve to help make up the difference.

Your variable income budget is always going to need some tweaking. It is important that you pay attention to what is happening around you, and in your industry. Without some preparation for the future, one or two bad months can financially devastate you.