Making Mixed Income Work: Bonuses, Tips, Stock, and Self-Employed Pay

Bonuses & Commissions: Fuel, Not Foundation

Treat bonuses and commissions as irregular income—great accelerators but unreliable anchors. Don’t build new fixed bills on top of them. Assign windfalls to goals: emergency fund, upcoming annual bills, extra debt, or a one-month buffer.

Tips & Cash Income: Log Fast, Deposit Consistently

For tip-heavy roles, keep records daily or weekly and make consistent deposits so your tracker matches your bank activity.

• Log tips the day you earn them (notes app or your budgeting tool).
• Batch-deposit on a schedule (e.g., every Friday) to keep reconciliations clean.

Tip income is taxable—know your reporting rules and keep good records.

Two-Income Households: One Plan, Simple Moves

Combine both net paychecks into a single monthly number for planning. Automate a savings transfer from each payday, then fund fixed bills and category caps. Staggered paydays help you “pay yourself first.”

RSUs & ESPP: Plan Taxes Separately

Non-cash comp shouldn’t fund groceries. Plan for taxes and vesting separately, understand sale rules, and decide in advance whether you’ll hold or sell.

• RSUs: Usually taxed as ordinary income at vest; many companies do sell-to-cover. Keep a diversification plan.
• ESPP (Sec. 423): Tax depends on holding period; track grant, purchase, and sale dates and retain Form 3922.

Reimbursements: Track, Don’t Count as Income

Expense reimbursements offset spending under an accountable plan. Track for visibility, but don’t inflate your budget by counting them as “income.”

Self-Employed? Treat Taxes Like a Bill

Move a percentage of every payment into a separate tax account and use IRS Form 1040-ES for quarterly estimates. Automate the transfer so April never surprises you.