How to Budget with a Fluctuating Income

In this episode, we’re tackling a challenge many freelancers and creatives face: budgeting when your income isn’t consistent. How can you stay on top of your finances when your earnings go up and down? How do you plan for big, irregular expenses like tax bills? And what systems actually help you feel in control, not stressed out?

Joining Emilie Bellet is Emilie Nutley—money coach, financial strategist, and qualified Financial Advisor. Emilie works with creatives and solopreneurs to build sustainable money systems, and she’s here to share practical tools, mindset shifts, and tips to help you budget with confidence—no matter how unpredictable your income is.

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Key Takeaways: Budgeting with a Fluctuating Income — with Emilie Nutley

1. Start With Your Target Take-Home Pay

"Always know exactly how much you need to pay yourself."

Instead of budgeting around what you earn, start by deciding what you want to pay yourself. Consider your living costs, business expenses, and personal goals, then reverse-engineer your income needs from there.

2. Track Your Income and Expenses Like Data

"Business finances aren’t emotional—they’re just numbers."

Use a simple spreadsheet to track what’s coming in and going out. This isn’t about micro-managing every expense, but understanding your cash flow and profit so you can plan ahead with clarity.

3. Use a Three-Account System to Stay Organised

"One account all the money goes in and out, one for tax, and one I call an overflow account."

Emilie recommends a system where one main business account handles all transactions, a second account (or pot) holds tax savings, and a third ‘overflow’ account captures excess income to smooth out low-earning months.

4. Budgeting Isn’t a Formula

“Life is expensive. And what the 50/30/20 method doesn’t account for is all the nuances of our lives.”

Forget rigid frameworks like the 50/30/20 rule. Your budget should align with your goals, lifestyle, and current season of life. Build a system that reflects your reality—not someone else’s ideal.

5. Make Budgeting Feel Easy (Not Overwhelming)

“You will never find colour coding or graphs in any of my spreadsheets.”

Whether it’s Google Sheets or a Notes app on your phone, find a system that you’ll actually use. The key is knowing what info you want to get from it—like your average expenses, profit margin, or owner’s pay—and making it as frictionless as possible.

6. Plan Ahead for Irregular Expenses

“You can map this out ahead of time… even months before it hits your account.”

Use your income tracker to forecast upcoming expenses. Having a full-year view helps you prepare in advance—whether that means pulling from your overflow pot, tweaking your business budget, or creating a short-term payment plan.

7. Tax: Save Early, Save Often

“Yes, the tax rate is 20%—but I’m saving 15% of revenue, not profit, so I’ll always have more than I need.”

Emilie recommends saving 15% of your revenue (not just profit) into a tax pot so you’re never caught off guard. Tools like Mettle or digital banks with auto-saving features make this easier—and reviewing past tax returns helps refine your percentage.

8. Avoid the Common Freelancer Traps

"Don’t confuse your bank balance with available cash."

One mistake freelancers make is treating their business account balance as spendable money. Always factor in upcoming payments, tax, and your own salary before making decisions. Over-complicating systems—or avoiding them entirely—can lead to burnout or fear-based choices.

9. Mindset Follows Strategy

“You can't magically think your way into feeling in control—you have to actually do the thing.”

If you feel overwhelmed, start with practical action: set goals, track income, build a system. Mindset shifts happen once you see the results. Reframing your internal narrative—“I can learn this,” instead of “I’m bad with money”—is a key part of the process.

10. Scale With Strategy, Not Hope

“Over the last year, I’ve almost doubled my take-home pay—and none of that is by accident.”

Whether you want to earn more, save more, or build wealth, strategy and tracking are non-negotiable. Identify your income gap, track your progress, and make confident decisions based on your real numbers—not guesswork.

Final Thoughts

Budgeting with a fluctuating income isn’t about perfection—it’s about building systems that give you clarity, flexibility, and confidence. Start with what you need, use simple tools that work for you, and don’t be afraid to adapt your strategy as your income grows.

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