When you have a home business, you have to be prepared for occasional drops in income. However, it is also important that you use a windfall, when it comes, wisely. There are some months where I am asked to complete a big project, and so get a great deal more money. Sometimes, I have two or three months in a row where I end up with more than usual. While it can be easy to get used to the higher amounts of income, it can be dangerous to come to rely on this money.

If you have a monthly average (figured out from what you made last year, divided by 12), you should consider what to do with extra money that comes your way each month. Hopefully, you already put some of your regular income aside for emergency savings, retirement and other regular expenses. So when you get extra some months, you truly can do something extra with it. Here are some ideas for what you can do in windfall months for your home business:

* Pay down debt.

* Set a large amount aside for something specific you’ve been saving up for.

* Invest it.

* Buy something fun or treat yourself.

Understanding your financial priorities can help you decide where the extra money should go.

Of course, you should also set a little aside for your taxes. If you make enough extra each month, that could change what you owe in taxes, and mean that the estimate taxes you have been paying are insufficient. Just remember that you might be charged a fee if you end up owing too great a difference in your taxes.