Budgeting on an irregular income
Freelancers, gig workers and commission earners can budget too. Start from your lowest month, not your average.
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When income changes month to month, a fixed budget can feel impossible. The fix is to plan around a reliable floor and treat good months as a bonus.
Find your baseline
Look at the last 12 months and find your lowest-earning month. Build your core budget, covering needs and minimum payments, around that number.
Pay yourself a salary
Deposit all income into one holding account, then transfer the same amount to checking each month. Extra from good months stays behind to cover slow ones.
Set aside taxes
If no taxes are withheld from your pay, set aside a share of every payment for income and self-employment taxes and pay quarterly estimated taxes. Many freelancers set aside 25 to 30%, but your rate depends on your situation.
Budget from your baseline
Enter your lowest monthly income in the planner and build your core budget around it.
Budget from your baseline →General educational information, not personal financial advice.