It's pretty easy to create a budget when you bring home a regular paycheck. Just match expenses to income for a certain period and you're all set. The only tricky part is making sure income exceeds expenses!

But what do you do if your pay is commission-based, or you're self-employed and earn an irregular salary?

It takes a little more planning, but creating a budget on an irregular income isn't impossible. Here's how to make it work.

Examine historical income data. Look back over the last year and chart your income. Is it fairly regular, or do you have seasonal ups and downs? Look for patterns that are consistent and reliable.

Estimate your income over the next twelve months. Use the patterns you just gleaned from your historical income data. Then, to the best of your ability, estimate whether your income will increase, decrease or stay about the same over the next twelve months. It's always best to estimate conservatively, so if you think your income will only increase slightly, use last year's figures and give yourself some breathing room, just in case the increase never materializes.

Review your expenses. Did you have a surplus over the last twelve months? Or did your expenses exceed your income? If your expenses exceeded your income, find ways to cut back until you reach your income level. Now try to cut another 10%. You can do this by cutting out an entire category, cutting 10% across all categories, or figure out 10% of expenses and reduce spending in several categories until you reach that amount.

Split up your expenses into fixed vs. variable. Fixed expenses are bills like your mortgage or car payment. You pay the same amount each time you pay the bill. Variable expenses are under your control. They include: groceries, clothing, some utilities, entertainment, travel, etc.

Divide total fixed and total variable expenses by the number of pay periods per year. You will then have two numbers: fixed expenses per paycheck and variable expenses per paycheck. These are the minimum amounts you need to set aside each time you get paid.

Set up three different checking or money market accounts to handle spending. One is for fixed expenses, the other for variable expenses, and the third for surplus. If you have direct deposit available, put the fixed amount in your "fixed" account, the variable amount in your "variable" account, and any balance left over in a surplus or savings account. If not, then put your entire check into your surplus account and transfer the fixed and variable amounts into the appropriate checking accounts.

Pay your bills out of the separate accounts. Not only will the money be there to pay your bills when they come due, you'll have a much better handle on where your money goes.

Use your surplus account to supplement fixed and variable accounts if balances are too low. If you've estimated your expenses and income correctly, you'll be putting extra money into your surplus account fairly often.

Never touch your surplus account! This is the money you'll use to help meet expenses during your "off-season" or rough patches. If you've estimated your income and expenses correctly, you should finish the year in balance. When you estimate your budget, allocate anticipated surplus funds to investment or "fun money" accounts. Then diligently set those monies aside like you do your fixed and variable accounts. Then you won't be tempted to spend out of your surplus account.

So, the key to handling irregular paychecks is to use historical data and best conservative estimates to work out a budget per pay period. Even out good and bad times by using a surplus account. Provide stability by dividing your income and expenses into pay period amounts, and set aside those amounts regardless of your total paycheck amount. If you've calculated right you'll find that you do just fine.

Above all, stay positive and focused. The upside to irregular income is the fact that you have more control over what you earn, unlike those who earn a set paycheck. Celebrate your ability to give yourself a raise!