How to budget when your income changes every month

A standard budget assumes the same pay arrives every month. When it does not, the method has to change.

1. Find your baseline

Look at the last six to twelve months and identify a low-but-typical month. Plan your essentials around that figure.

2. Pay yourself a fixed salary

Move income into a holding account and pay yourself a steady amount each month. Good months top up the pool, lean months draw from it.

3. Build a bigger cushion

With uneven income, a larger emergency fund, often six months or more, is worth aiming for.

4. Prioritise in order

In a lean month: essentials, minimum debt payments, then everything else. Know your order in advance.

5. Save from the good months

A strong month is the best time to fund the cushion and annual costs, not to raise your lifestyle.