So, your income has changed. Maybe you got a shiny new job with a higher salary, or perhaps you’ve decided to go part-time to focus on that side hustle. Either way, it’s time to adjust your budget and make sure your financial plans are in line with your new financial reality. Don’t worry; we’ve got you covered with some simple steps to make this process as smooth as possible.

**Assess Your New Income**
First thing’s first – understand your new income. If you’ve got a new job, look at your pay stub and take into account any deductions and taxes. If you’re going freelance or part-time, calculate your monthly earnings and factor in any seasonal fluctuations. Knowing your exact income is the foundation of your revised budget.

**Review Your Fixed Expenses**
Fixed expenses are those that remain relatively consistent every month, such as rent, insurance, and subscriptions. List these out and see if any can be renegotiated or adjusted. Could you, perhaps, find a cheaper insurance deal or bundle your streaming services to save?

**Evaluate Variable Expenses**
Variable expenses are those that change month to month, like groceries, entertainment, and transportation. These are the expenses where you’ll typically find the most potential for savings. Review your bank statements and identify areas where you may be overspending. Maybe you could cut back on eating out or save on transportation by carpooling or using public transport.

**Create a New Monthly Budget**
Now it’s time to create your new monthly budget. Start by listing your total monthly income, then subtract your fixed expenses. With the remainder, carefully allocate funds to your variable expenses, ensuring you still have enough for savings and any unexpected costs.

**Prioritize Your Savings**
No matter how your income changes, it’s crucial to prioritize savings. Consider setting up automated transfers to a savings account so you’re consistently putting money aside. If your income has increased, you might also consider investing some of the extra funds.

Adjusting your budget after an income change is all about taking control and planning for the future.