> ## Documentation Index
> Fetch the complete documentation index at: https://docs.budgetbandit.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Budget on irregular income

> Budget the money you have now, not the money you expect. A practical method for freelance, commission, and variable pay.

Zero-based budgeting works the same whether your income is steady or not, but the
mindset shifts. You budget the dollars sitting in your accounts today, not a paycheck you
hope is coming. Budget Bandit never asks you to forecast income — you only ever assign
money you already have.

## The core idea

When income arrives, it lands in Ready to Assign. You give those dollars jobs. When
nothing arrives, Ready to Assign sits where it is and you spend down what your categories
already hold. There is no "expected income" line to get wrong — what you can spend is the
number in the category, full stop.

## A practical method

<Steps>
  <Step title="Build a one-month buffer first">
    The goal is to be spending last month's income, not this month's. Until you get there,
    assign each deposit to this month's most urgent needs as it lands: rent, food,
    utilities, minimum debt payments.
  </Step>

  <Step title="Prioritize your categories">
    Order your categories so the essentials sit at the top. On a thin month you fund from
    the top down and stop when the money runs out. On a strong month you keep going into
    the lower-priority categories.
  </Step>

  <Step title="Assign every deposit when it arrives">
    Each time money comes in, open the Budget page and assign the new Ready to Assign
    balance. Fund the top priorities to their targets first.
  </Step>

  <Step title="Use targets to see what each category needs">
    Give recurring bills a [target](/budgeting/set-a-target) so you always know the gap
    between what is funded and what is due. A good month lets you fund ahead.
  </Step>
</Steps>

## Tools that help with variable income

* **Auto-assign, Fund My Goals.** When a deposit lands, run
  [Auto-assign](/budgeting/auto-assign) with the "Fund My Goals" strategy. It fills your
  targets earliest due dates first, so the most urgent bills get the new money before the
  rest.
* **Based on Spending.** For categories with no fixed target, the "Based on Spending"
  strategy sets them to your three-month average — a realistic number for variable costs.
* **Move money freely.** A lean month will leave a category short. Cover it by
  [moving money](/budgeting/assign-and-move-money) from a category that came in under.

## Fund a buffer category

Many people on irregular income keep a dedicated category — call it Income Buffer or Next
Month — and over-fund it in strong months. When a weak month comes, they move money out
of the buffer into the categories that fell short. This smooths the swings without
forecasting anything.

<Tip>
  The day you are fully funding next month from money you already earned, irregular income
  stops feeling irregular. The budget no longer cares when the next deposit lands.
</Tip>

## Related

<CardGroup cols={2}>
  <Card title="Auto-assign" icon="wand-magic-sparkles" href="/budgeting/auto-assign">
    Fund your priorities each time income arrives.
  </Card>

  <Card title="Set a target" icon="bullseye" href="/budgeting/set-a-target">
    Tell each category what it needs.
  </Card>

  <Card title="Assign and move money" icon="money-bill-transfer" href="/budgeting/assign-and-move-money">
    Cover a lean month by moving money.
  </Card>

  <Card title="Rolling money forward" icon="forward" href="/concepts/rolling-money-forward">
    How leftover money carries into next month.
  </Card>
</CardGroup>