3 Tips to Manage Having Irregular Income

Gig workers know that an irregular cash flow comes with the territory – but not all gig and independent workers have learned how to master the highs and lows that come from having an irregular income. Gig work lets you set your schedule and work on your own terms. But this often means you can’t rely on a constant, unchanging payday. This can lead to mismanaging your money and feeling a lack of financial freedom.

Knowing how to manage your money, save for lean times, and stick to a budget can help you enjoy lower stress in your daily life. If you’re a gig worker, the following skills will help you enjoy life with lower stress and better overall quality of life.

Tip #1: Make a Budget

Plan out your income to the best of your ability. Determine a base income necessary for each week or month to pay your bills, buy food and groceries, and cover whatever expenses are necessary to keep your life comfortable.

When building your budget, be honest with your necessary expenses (like bills and rent). Don’t underestimate the extra expenses like trips to the movies and money for eating at restaurants. You won’t do yourself any favors by telling yourself you spend less than you really do.

Once you know how much you need to make in a period, then you can set goals to earn that much. Plan your work schedule and stick to it. At the end of the pay period, evaluate whether your budget was successful. If you went over budget, re-evaluate your spending and how much you need to work to cover your expenses.

Tip #2: Develop a Savings

Having a savings is crucial. Build this into your budget by planning to save a certain amount with every pay period. Put away savings as often as you can. With irregular income, an emergency fund is even more important. Even putting away just a small amount every month, you can eventually build up your savings to a more substantial amount. A key piece of financial freedom is being able to put aside the constant fear that one unfortunate event can deplete your financial resources.

Tip #3: Be Ready to Roll With Irregular Income

Be ready for fluctuations in your income. Good weeks or months will be great – but bad weeks or months are always a possibility. Sometimes, you can fill your schedule and work harder to earn more. But sometimes, it’ll be a struggle. Make sure you’re in a position to handle either possibility.

Don’t overspend during a good period just because you made more than expected – this will make the lean times harder. Be wise with your money and keep taking steps to ensure future success. If you do make better money than usual, set aside the extra in your savings. Don’t spend it!

If you can keep these three tips in mind, you can find yourself working toward financial freedom while working in the gig economy. Flexibility can be both a blessing and a curse. Just focus on what you can control and plan for, and you’ll find your way. If you need more help, consider looking into a banking solution like indi® for Jobblers: banking for the workforce on-the-go.

About the Author: Kathryn Elwell grew up in the Midwest. She has experience in management and human resources, and has been writing on these topics and more for 12 years.