Build a budget that copes with change
- 1
Look back over a year
If you can, add up what you actually received after tax over the past 12 months, then divide by 12 or 26 for a monthly or fortnightly average.
- 2
Find your baseline
Look at your quieter months too. Planning essentials around a lower, realistic figure helps the budget hold up when work is slow.
- 3
List essentials first
Rent or mortgage, food, energy, phone, transport, insurance, medicine and minimum debt repayments come before everything else.
- 4
Track a full pay cycle
Moneysmart suggests tracking your spending for two weeks if you're paid fortnightly, or four weeks if you're paid monthly.
- 5
Plan for irregular bills
Add up yearly costs such as registration, insurance and school costs, divide by the number of pays and set that amount aside each time.
Smooth out the ups and downs
A buffer account
In good weeks, move the extra into a separate savings account. In lean weeks, top up from it, so the amount you live on stays steady.
Separate accounts
Moneysmart suggests one account for bills, one for spending and one for savings, with automatic transfers on pay day.
Smaller, regular bills
Ask providers whether you can pay fortnightly or monthly instead of facing one large bill.
Tax and super
If you're self-employed or a contractor, set aside part of each payment for tax and super so they don't become a debt later.
When a lean week hits
- Cover essentials first, then minimum repayments.
- Call providers early if a bill will be late; many have payment plans or hardship programs.
- Check whether you're eligible for Centrelink support if your income has dropped.
- Avoid using new credit for everyday costs; it can make the next lean week harder.
- Call the National Debt Helpline on 1800 007 007 if you're falling behind.
Irregular income questions
How do I budget if I don't know what I'll earn next month?
Base your plan on a realistic lower figure, such as your average from quieter months, and treat anything above it as extra for your buffer or savings.
How big should my buffer be?
There's no single right amount. A useful first goal is enough to cover a month of essential costs, built up over time. Even small, regular amounts help.
How do lenders treat irregular income?
Lenders generally look at what you've actually received over a period and how regular it has been. If income varies a lot, a lender may use a lower figure to test whether repayments are manageable.
Is there a free budget tool?
Yes. Moneysmart has a free online budget planner you can use to test different income and spending figures.