Budgeting for irregular income - NAB

Why managing irregular income is tricky

Freelance or casual work offers flexibility, but unpredictable pay can make it hard to plan. Without a steady salary, budgeting and saving for tax often feels overwhelming. The good news? With the right approach, you can smooth out the ups and downs and stay financially confident.

Understand your income pattern

  • What is casual income? It’s income that varies from month to month, unlike a fixed salary. This type of income is especially common for freelancers, gig workers and sole traders.

  • Review past months to identify average earnings and seasonal peaks.

  • Try baseline budgeting: plan around your lowest monthly income so essentials are always covered.

How to budget for irregular income

  1. List essential vs flexible expenses: Essentials include rent, utilities, and insurance; flexible costs can wait during slow months.
  2. Base spending on your lowest income month: This prevents overspending when income is high.
  3. Save the surplus during busy months: Use extra income to build a buffer or pay down debt.
  4. Download the cash flow budgeting template for easy tracking.

Set aside money for tax

  • Casual income is still taxable.
  • Set aside a portion of your income in a separate savings account to avoid surprises.
  • The ATO requires all income to be declared, including any obtained from freelance and casual work.

Learn more in our guide to paying tax as a sole trader.

Build a financial buffer

  • Save during high-income months to cover slow periods or emergencies.
  • Consider aiming for a 3-month buffer goal for consistent cash flow.

Account options like the Business Cash Maximiser account could help you earn interest on your buffer.

Track your casual income and expenses

  • Tracking is crucial for claiming deductions and managing cash flow.
  • Use accounting software or spreadsheets.
  • Review transactions in NAB Internet Banking or the NAB App to monitor trends.

Learn more in our guide to tracking business expenses effectively.

Plan for long-term stability

Other business tips and resources

Do I need a separate business bank account?

Find out why it’s a good idea to keep your business and personal banking separate.

10 tips for choosing the right business savings account

Smart tips for choosing the ideal business savings account.

​Understanding and managing your cash flow

Learn how to understand your cash cycles and set cash goals.

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Important information

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.