Budget on an irregular or self-employed income

Use this guide if your income changes from month to month, for example as a sole trader, freelancer, zero-hours worker, seasonal worker or on commission. Have bank statements for the last six to twelve months and a list of your regular bills ready. A standard monthly budget often fails on uneven pay, so this guide uses a different structure.

Step by step

1. Find your baseline income

   Add up your take-home income for each of the last six to twelve months and note the lowest months as well as the average. Your baseline is a cautious figure close to your lower months, not your best ones. Planning around the baseline means good months create a surplus rather than a habit of spending you cannot sustain. If you are newly self-employed, use a cautious estimate and review it after three months.