Template categories
| Category | Type | Suggested starting % |
|---|---|---|
| Tax set-aside | Savings | 20% |
| Housing | Needs | 25% |
| Utilities & bills | Needs | 6% |
| Groceries | Needs | 10% |
| Transport | Needs | 6% |
| Insurance & pension | Savings | 6% |
| Income smoothing buffer | Savings | 7% |
| Personal spending | Wants | 10% |
| Leisure | Wants | 6% |
| Business costs not reclaimed | Needs | 4% |
Suggested starting points only, not statistics. Adjust them to your real costs.
How to use this template
When you are self-employed, no employer withholds tax for you, so the first line of this template is a tax set-aside. The percentage shown is only a placeholder — the right amount depends on your profits, country and tax position, so check official guidance from your tax authority (for example HMRC, the IRS, the CRA, the ATO or Inland Revenue NZ) or ask an accountant.
Budget from your lowest typical month of income rather than your average, and build an income-smoothing buffer from good months to cover quiet ones. Pay yourself a regular “salary” from your business account into your personal account to make household budgeting predictable.
- Move the tax set-aside into a separate savings account as soon as you are paid.
- Keep business and personal spending in separate accounts.
- Review income every month and top up the buffer in strong months.
- Don’t forget a pension, since there is no employer contribution.
FAQ
How much should self-employed people set aside for tax?
It depends on profits and country; use official calculators or ask an accountant.
How do I budget with irregular income?
Budget from your lowest typical month and save surplus months into a buffer.
Should I pay myself a salary?
Transferring a fixed amount monthly makes personal budgeting much easier.