Budgeting with Irregular Income

Individuals with sporadic income, such as those receiving 90% of their salary in a short time frame, face unique budgeting challenges. To manage cash flow effectively, it's essential to set up a budget that accounts for all necessary expenses over 12 months rather than living paycheck to paycheck on the larger amounts received in bursts. A recommended strategy is to transfer a portion of each paycheck into a separate high-yield savings account and allocate a consistent monthly amount for living expenses. This approach prevents overspending and maintains financial discipline during lean months when no income is received.