Self-Employed Budgeting Tips

tips-to-considerSamuel Peery over at the Getting Finances Done wrote a great post last week with some excellent tips on “Budgeting on a self-employed or irregular income.” The info he outlines is some of the best advice I’ve seen for those working from home or looking to make a go at it:

Use cash for out-of-control categories – Since you may not know when your next paycheck will be, it’s more important than ever to keep a tight grip on variable expenses that tend to get out-of-control.

Build up a short-term emergency fund (STEF) equivalent to four weeks of expenses – A STEF will help smooth out the bumps inherent in an irregular income

Determine the timing and priority of expenses ahead of time – Planning the order in which expenses must be paid and allocated will relieve a ton of stress. You’ll know exactly where your income needs to go before you even get it.

Create a sample budget as a reality check and baseline – A sample budget helps to ensure you are not only living within your means but also achieving your high-level, long-term financial goals.

There’s a lot of valuable advice and good planning tips. Well worth a read.


  1. Those of us who work at home indeed have irregular revenue, so these tips are very helpful, especially for those who are just starting the journey.

    It was easy for me to pull money out of my business to pay for personal expenses, but I didn’t know how to properly show the expense in my financials. My accountant was the person who showed me how to code withdrawals correctly. Doing that right was a big step for me.

  2. Great point. This seems to be one of the hardest areas to grasp, especially for those making the transition to working for themselves. I talk to many new home business owners who are struggling to budget and account for everything. A good set of guidelines are extremely valuable when working out your own plan.

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