How to manage your money on an irregular income

If you live and work in an area where seasonal work is common, you might find your income changes drastically from month to month.

Managing money can feel like a constant balancing act, so it’s perhaps no surprise that in some of these areas, many people are turning to debt support for help.

Official figures show that in Blackpool, for example, 38.1 per 10,000 people entered into a debt respite scheme - breathing space - last year.

That’s the second highest figure in the country.

And the third highest was in Great Yarmouth (36.2 per 10,000 people).

It’s no coincidence that two of the top three are both popular seaside towns, highly dependent on tourism, with many people in seasonal jobs in areas like hospitality and retail.

So if your job and your income depends on busy holiday seasons, how can you stay on top of your money?

Work out your average income and spending 

If your income changes from month to month, work out your average income and expenses for the entire ear.

Then divide it by 12 so you have a clear picture of how much money you actually have available.

You can then start logging your monthly income and spending and be able to budget more effectively.

Try our free budgeting tool to get started.

Plan ahead 

When you’ve worked out your average monthly spend, start thinking about those times when costs are likely to be a bit higher, such as Christmas or the school holidays.

Work out how much you typically spend on these specific events or occasions and divide that by 12 as well.

You can then work out how much you need to set aside for them in each month of the year, without having to cut back on essentials when those times roll around.

Build up an emergency fund 

If you earned more or spent less than you expected in one particular month, then try to avoid spending for the sake of it.

Instead, it could be worth putting into a rainy day fund, so you can build up a buffer in case you’re hit with unexpected costs.

Use separate accounts 

If you’re on an irregular income, it can be worth putting money for different purposes in separate accounts.

For example, you could pay all your regular day-to-day expenses from one account, and have another where you can save up for those times when money is tight.

If you get into this habit, you’ll be less tempted to spend too much during good months.

Get debt advice 

If you’re really struggling and relying on credit to make ends meet, it might be time to ask for debt advice. 

We can: 

• find out what benefits you may be eligible to claim
• help create a realistic budget you can stick to
• advise on what debt solutions may be available to you