Jun is transitioning from working full-time to starting his own business. He needs to create a new budget that aligns with his anticipated income changes. What is the most significant budget adjustment Jun should make as he transitions to self-employment?

Self-employment often brings income that varies from month to month, unlike a regular full-time paycheck. Jun should plan for those fluctuations and build an emergency fund to cover essential expenses during slower periods. Increasing vacation, grocery, or entertainment spending does not address the main financial uncertainty of the transition.

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