The lowdown:

• Cover your essential bills before anything else
• Save a little more during busy months to help cover slower ones
• Put money aside for taxes if they're not automatically taken off your pay
• A few simple habits can make your money much easier to manage

Budgeting advice often assumes everyone gets a paycheque with the same amount every week, two weeks or month, with taxes already taken off. For many people across Vancouver Island and the Gulf Islands, that's simply not reality.

If you work in tourism, hospitality, construction or another of the region’s biggest industries, or if you freelance, do contract work or work a seasonal job, your income can go up and down throughout the year. Some months there are plenty of shifts or clients. Other months are much quieter.

This “feast or famine” feeling can make it tricky to budget effectively. However, it is possible to build a budget that changes with your income. That way, you're prepared whether it's a busy summer, a slower winter or anything in between.

Start with your slowest month

One of the biggest mistakes people make is building their budget around a really good month. Instead, look back over the past year and find three or four of your slowest months. Then calculate the average to come up with the minimum income you are realistically likely to earn, also known as your “income floor.”

For example, if your three lowest months are $2,400, $2,800 and $3,000, your income floor is:

($2,400 + $2,800 + $3,000) ÷ 3 = $2,733

That's a much better starting point for budgeting, because it's the amount you can usually count on earning, even when work is quieter.

Know your essential expenses—and pay them first

Next, write down your monthly bills, such as rent or your mortgage, groceries, utilities, insurance and transportation. Take an average if any of them vary. If those expenses are higher than your slow-month income, look for places to cut costs or save money. For example, watch out for money leaks through “ninja spending.”

When money is tight it's important to decide what matters most. Is it that new home appliance or is it rent? The best approach is to pay the bills that keep everyday life running first. That usually means housing, groceries, utilities, transportation, insurance and minimum loan or credit card payments.

On the other hand, when you have a stronger month, don't immediately think of it as extra spending (or saving) money. Think of it as first helping to pay next month's bills, just in case it’s a slow month. Then you can save or spend with the peace of mind that your essential bills are covered.

Look for easy savings

There are easy ways to save money. Could you cook at home a little more this month? Pause a streaming service you haven't watched lately? Put off a few non-essential purchases until work picks up?

If possible, consider putting a little into savings before spending on anything else. Even $25 from every paycheque via automatic deposits soon becomes a few hundred dollars. That savings habit can ensure you always have a cushion for extra slow months if needed—again to ensure the essentials get paid.

Quick tip: If you're reaching for your credit card just to pay everyday bills every month, it may be a sign that your spending plan needs adjusting before your debt builds.

Make busy months work harder

A good month can feel like a chance to catch your breath and perhaps ease up a bit. Of course, it’s okay to celebrate your hard work, treat yourself and maintain a healthy work-life balance. However, before splashing out, remember how your income fluctuates and ask yourself this:

"Could I make life easier for myself three months from now?"

It could be paying off part of a credit card balance. Or adding to your emergency savings. Or maybe it's putting money aside for a month when you know work will be quieter. Using busy months to prepare for slower ones can take a lot of stress out of the year. It’s basically today you looking out for future you.

Quick tip: If you earn an extra $800 during a busy month, try moving $400 straight into savings the day you're paid. When work slows down later in the year, you'll already have money waiting for you.

Here are a few practical ideas for a busy month:

• Pay off some more of your highest-interest debt, such as your mortgage or credit card
• Put one week's income into emergency savings
• Pay your annual insurance early if it saves monthly fees
• Switch to a cheaper annual streaming plan for a TV platform and pay it off at once
• Set aside money for vacation spending instead of planning to rely on your credit card

Don't forget about taxes

While it’s hard to forget about taxes, it’s easy to overlook planning for them. If you're self-employed, freelance or working on contract, tax may not be taken off your pay before you receive it. That means the money sitting in your account isn't all yours to spend.

A simple habit is to move part of every payment into a separate savings account that's only for taxes. Call it “For the taxman” or whatever you like. It may hurt a little at the time, but come tax time knowing you’ve squirreled away enough to cover your tax bill can be a big stress reliever. If you saved too much, consider that a bonus! And you never have to wonder whether the money is available because it isn't mixed in with your everyday spending.

Quick tip: Pick one percentage and transfer it every time you're paid. Your accountant or tax advisor can help you decide on an amount. It soon becomes part of your routine, especially if you automate it.

Keeping receipts, invoices and other records in one folder throughout the year will also make tax season much less stressful than trying to find everything at the last minute.

Create a cushion for slower months

Unexpected expenses have a habit of showing up at the worst possible time. A flat tire. A broken appliance. A week without work because you're sick.

Even a small emergency fund can stop a surprise expense from turning into a financial crisis. Just knowing you have that cushion can provide some peace of mind. Keeping this money in a separate savings account also makes it less tempting to dip into it for everyday spending.

Don't worry about saving thousands of dollars straight away. Start with your first $500. Then aim for $1,000. After that, work towards saving enough to cover three to six months of your essential bills, depending on how irregular your income is.

Simple habits that make budgeting easier

You don't need a complicated spreadsheet to stay on top of your money. Sometimes the simplest habits are the ones that stick. Here are a few to keep in mind:

• Spend 10 minutes once a week checking what's come in and what's gone out.
• Look ahead at next month's bills before the month begins so there are no surprises.
• If it helps, keep separate accounts for everyday spending, savings and taxes. Seeing the money separated can make budgeting much easier.
• Whenever you receive a payment, decide where it needs to go before you spend any of it.

When to ask for help

If your income changes throughout the year, sometimes a fresh pair of eyes can help you spot opportunities you hadn't thought about. One of our advisors can help you build a budget that fits the way you earn, prepare for seasonal changes in income and create a savings plan that works for your goals.

It's also worth talking about borrowing options before you need them. Knowing what's available ahead of time can give you more confidence if life throws you an unexpected expense.

Build a budget that works with your life

An income that changes from month to month doesn't mean you can't feel in control of your money. By budgeting around your slower months, covering your essential bills first, making the most of busy periods, maintaining an emergency fund and building savings little by little, you'll be better prepared for any income changes and surprises.