Guides / Sticking with it
Budgeting with irregular income
Budget on your lowest month and build a buffer.
Freelancers, gig workers and anyone on commission can budget too. The key is a baseline and a buffer.
Steps
- Work out the minimum you need each month to live
- Put all income into a holding account
- Pay yourself that baseline each month
- Leave the surplus from good months as a buffer for lean ones
- If nobody withholds tax from your pay, set aside money for taxes separately
General information, not tax advice. The Pennies Budget isn't paid by any company mentioned here.