Having an irregular income can make budgeting seem impossible when you have different amounts coming in each month, but if you know how much is going out each month, you can budget.
If your income varies, a good tip is to budget for your lowest monthly income – at least you’ll always have the major costs covered. Then, if you have a good month, you can revise your monthly budget up.
Or total up everything you had coming in over the last year and divide it by 12. This will give you an average monthly income to use as a base mark for your income.
Then think ahead and look at how your outgoings, costs and spending is spread across the year, for example, utility bills, work costs, car tax, any insurance you might have, self-assessment tax bill and add them in your budget.
Remember, there will be months when certain payments are due or you spend more, such as Christmas, school holidays or family birthdays.