Budgeting doesn’t have to be complicated. You don’t need fancy tools or an accounting degree to take control of your money. What you do need is a system that reflects your real life, especially if your income isn’t the same every month.

Budgeting is the bedrock of personal finance. Every financially successful person who built their wealth from the ground up started with a budget. Because the truth is, you can’t plan what you don’t know. Without a clear picture of where your money’s going, it’s hard to make confident choices, whether it’s saving, investing, or simply spending without stress.

Whether you’re freelancing, earning commissions, juggling multiple income streams, or even receiving a regular paycheck but dealing with unpredictable expenses, this kind of system can help.

I’ve been using this setup for years now. It’s helped me reduce stress, stay consistent, and feel in control even when life doesn’t go exactly to plan.

Why I Keep My Budget Simple

As a freelancer with an irregular income, some months are great and others are slower. Instead of adjusting my spending based on how much I earn, I stick to a fixed monthly budget that keeps me grounded.

That number? ₱40,000 per month.

It covers:

• ₱32,000 in fixed expenses
• ₱8,000 in flexible, “wiggle room” spending

Let’s break it down.

My Fixed Monthly Expenses

These are the essentials—the non-negotiables I need to live and work comfortably every month.

I round it up to ₱32,000 for simplicity. These are the baseline costs I plan for each month.

My Wiggle Room: ₱8,000 for Life’s Extras

This is like a miscellaneous fund that covers the flexible and fun stuff:

• A small Shopee order I didn’t plan for
• Extra ingredients for a recipe I want to try
• Dining out with friends or family
• One-off needs that don’t fit a category

I track these too, but since they vary month to month, I don’t include them in my fixed expenses. Still, they’re part of the plan. Combined, my working monthly budget is ₱40,000.

A Bit of Context About My Life and Living Setup

This might seem low or high depending on your situation, so here’s some context:

🏠 I’m single and live with my parents and siblings. Instead of paying bills separately, I contribute a fixed share to our household budget.

🧾 I handle my own government contributions like SSS, PhilHealth, and Pag-IBIG, and I also set aside money for taxes.

🏥 I pay for my own health insurance.

💻 Most of my subscriptions support my work, like Canva, Google Workspace, and Spotify. Other streaming services are shared with my siblings.

📱 My phone plan is SIM-only.

💊 I set aside a monthly budget for wellness like vitamins, skincare, teas, and similar items.

💰 This budget isn’t fixed forever. I revisit it every 6 months to review what still makes sense, remove things I no longer need, or make room for something new.

Here’s what else you should know about me:

• I already have a completed 12-month emergency fund, so I no longer set aside money for emergencies within my monthly budget. This gives me peace of mind and flexibility. I saved this money in a high-interest savings account.
• I’m frugal and minimalist by choice. I don’t enjoy shopping or owning a lot of stuff, but I do allow for the occasional treat.
• I work out at home using equipment I already have.
• I rarely dine out because I enjoy eating at home with my family, so instead of allocating a separate budget, I just pull from my wiggle room.

How I Use This Budget as a Freelancer

Once I’ve set my monthly income target at ₱40,000, I make sure to secure at least one client or project that covers that amount each month. From there, I use a simple zero-based budgeting system to allocate any extra income intentionally.

Here’s how I split what’s left:

• 20% goes to my Joy Fund – usually for travel or tech upgrades for work (like a new laptop)
• 80% goes to Investments – split across global index funds and MP2

Before making this split, I also make sure to set aside funds for taxes.

A Quick Note on Building a Budget That Feels Right for You

If you’re looking at my numbers and wondering if your budget should look the same, don’t worry. Your budget should reflect your life, values, and priorities.

What I love about my setup is that it’s needs-based, not income-based. I don’t change my lifestyle depending on how much I earn. I stick to my baseline budget (₱40,000), and anything extra gets allocated toward future goals.

Some months I spend more from my wiggle room, some months less. The important thing is that I’ve already made space for it, and I review my tracker regularly to stay mindful.

Budgeting has given me clarity and peace of mind. When you track where your money is going and really know your numbers, you make better choices. That kind of awareness is powerful.

Who This System Is For

This isn’t just for freelancers. It works for anyone who:

• Has income that changes (freelancers, side hustlers, commission-based earners)
• Wants a more intentional way to manage spending and saving
• Feels overwhelmed by budgeting apps or complex systems
• Wants a balance between structure and flexibility

My Tita Thoughts

You don’t need a perfect income to build a sustainable budget. What you need is a system that gives you clarity, consistency, and confidence.

Start with one thing: figure out your “set number,” and build from there.

You’ve got this.

Have a question or just want to connect? Feel free to send me an email or follow along on Instagram @virtualtita. Let’s talk freelancing, personal finance, or anything in between. And if you’d like tips and stories delivered straight to your inbox, sign up for the newsletter below.

Affiliate + Content Disclaimer: Some of the links in this post are affiliate links, which means I may earn a small commission if you buy through them, at no extra cost to you. These small commissions help keep the blog running and support the work I do here. I only share products and tools I’ve personally used or genuinely believe could be helpful. No pressure to buy anything you’re unsure about.

Please remember that I’m not a licensed financial advisor. Everything I share is based on personal experience and research. Always do your due diligence before making any financial decisions.