The 54-year-old does not receive a salary, but is entitled to a modest monthly stipend to cover his expenses as leader.
The expenses cover was stopped by Ukip’s National Executive Committee during a meeting on Sunday which also saw a wave of resignations in the party following a no-confidence vote in the leader.
Mr Bolton revealed he had lost confidence in the party’s ruling committee and said it was time to “drain the swamp”.
He said: “There are bills to be paid and all my savings have just about gone.
“There is absolutely nothing convenient in any of this for me. I am not doing it for the money, I am not doing it for my ego, I am not doing it for my personal life.
“I am doing it simply and only because I believe that Ukip’s voice must be heard in the discussion about leaving the European Union.”
A friend of Mr Bolton told The Telegraph: “He is paying for everything. Tickets from Folkestone to London. Everything. He doesn’t get a bean.”
The fallout for the Ukip leader continues following mass resignations after the scandal surrounding his ex-girlfriend Jo Marney, who wrote racist text messages about Prince Harry’s fiancee Meghan Markle.
The beleaguered boss insisted his “romantic” relationship with the 25-year-old had now ended.
Mr Bolton presented a bleak future for the party after he said that the party is struggling to balance its books, claiming Ukip is losing “£20,000 to £30,000 a month”.
He said holding a leadership election now would prevent the party from being able to “vent be on the bench when it comes to the local elections” and Ukip should be focusing on campaigning for a “clear, quick and clean Brexit”.
Mr Bolton’s future is set to be decided at a general meeting of the party in February, which will see members vote on whether he can stay on as leader.
In a rallying call to supporters, he said earlier: “The NEC requires significant and urgent reform. To that end, again during the coming weeks, I shall be proposing a new Party constitution, with a newly constituted and reformed NEC. Likewise, it is now time to put an end to the factional in-fighting within the Party and to remove those who have been a part of that.”