How to Make a Commission Only Budget

With a commission only paycheck, it may seem impossible to create a budget that takes care of your bills on a consistent basis when your own income is so changeable. However, it is possible to predict the unpredictable if you take control of the process. It just takes a plan, good organization and discipline. If you need to make a commission only budget, consider some necessary steps in your method.


  1. Image titled Make a Commission Only Budget Step 1
    Sit down and make a list of your monthly expenditures, from your utilities to your debts. In order to establish a budget with irregular income, you need to know how much you must make in order to continue to survive. Take your monthly expenditures and multiply them by 12 months, and then divide that amount by 52 weeks. This calculation gives you your financial obligation on a weekly basis. If you get paid biweekly, multiply the weekly amount by 2, and so on. By doing this, you will know how much you need to make for an income.
  2. Image titled Make a Commission Only Budget Step 2
    Estimate your income by taking last year's income and dividing that amount by 12 months. If your income is higher than your expenditures, as just determined, then you can set a budget that works. If the income is lower, you will have to cut back on your expenditures. Make sure that you don't use an extraordinarily high paid year as an example. You will only set yourself up to fail if this year is not so fortunate.
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    Open up 2 bank accounts.
    • Deposit all of your income in 1 account as it comes in. This account will be your savings account. The idea is that the high and low months come together in your savings account, and you can pay yourself a consistent amount regularly.
    • Use the other account for the salary you will be paying yourself. Transfer over enough money each month to pay your bills, and pay them from this account. Even on your low months when you may not make the amount needed for your commission-only financial plan, you will still be able to pay your obligations because you have the money put aside in a savings account.
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    Be prepared for some setbacks. It may take some time to build up your savings account so that you always have enough money. Soon the process of creating a commission based budget will become second nature.


  • Understand that because you are responsible for your own salary, you really need to be disciplined. It may be really tempting to make a big spend on something when a really big job pays you, but you must refrain from doing so. Instead, start a fund for large ticket items, and add that to your budget.

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Categories: Budgeting