How do I budget with an irregular income?
Base your budget on your lowest typical income and smooth out the rest with a buffer.
Irregular income, such as freelance or seasonal work, makes planning harder, but a few habits create stability. The idea is to pay yourself a steady amount from a buffer.
Base your plan on your lowest typical month, not your best.
Steps
Work out your essential monthly costs. Look at your income over the past 6 to 12 months to find a safe baseline.
Smooth it out
Put all income into one account, and pay yourself a regular amount. Save extra in good months for slow ones.
Set aside for taxes
If tax is not deducted from your income, keep a portion aside as you earn. Build a larger emergency fund, such as six months of costs.
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