How to Manage Irregular Income

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More people are opting to work gig jobs instead of regular jobs. This means that they are likely to deal with an irregular income. It can be harder for you to stay afloat financially if you do not have a consistent income. However, there are things that you can do to make it easier.

Pare Down Your Expenses

If you reduce your monthly expenses, then you will have an easier time making ends meet. There are several things that you can do to pare down your expenses. For example, you can reduce your housing costs by living with a roommate. You can also drive a used car. Additionally, you will need to buy store-brand groceries instead of the top-dollar brand.

Consider a Cash Advance

Payment gaps can be very destructive to personal finances. Let’s say you’re able to earn $600-1000 a week when there is work available in your industry, but two weeks go by without any job opportunities at all. That adds up to a lot of missed income, meanwhile the bills keep coming. If new assignments are in the works, but the work opportunity doesn’t start for another week, consider a hassle-free cash advance to bridge the gap in pay. Lenders can deposit anywhere from several hundred to upwards of a thousand dollars into your bank account as soon as the next business day. As soon as that next invoice gets paid, the loan can be paid off in full. However, it’s important to avoid cash advances if near-future income is not assured; failure to repay on time will incur stiff fees and penalties.

Build Up Your Emergency Fund

Planning ahead is one of the keys to managing irregular income. It will be a lot easier for you to make it through the months when your income is slim. You will need to have three to six months of savings in your account. Your savings can keep you from having to borrow money to cover your expenses.

Plan for Your Taxes

People who work regular jobs have their taxes taken out of the paycheck. However, if you are self-employed, seasonal worker or independent contractor, then you will not have any taxes taken out of your check. That is why you will need to plan for tax time in advance. Save money to cover your taxes. You will also need to keep track of all of your receipts because you may be able to deduct some of your expenses.

Find Other Ways to Bring in Income

If you do not have a consistent income, then it is a good idea to find other ways to supplement your income. There are a number of ways that you can make money. For example, if you love kids or dogs, then you can make money with babysitting or dog-sitting. You can also make money by running errands for people. Additionally, you can turn your hobby into a business.

Use the 50-20-30 Rule

Having a budget in place will make it a lot easier for you to deal with any income fluctuations that you may have. There are several ways that you can budget, but many financial experts recommend using the 50-20-30 role. Fifty percent of your income will need to go to your fixed costs such as car payment, utilities, and rent. Twenty percent of your income should go towards debt and savings. You can use the remaining 30 percent for things like eating out, gas and entertainment.

Inconsistent income is one of the potential downsides to not having a 9 to 5 job. However, you can manage your income by paring down your expenses and setting a budget. You will also need to maintain good credit and have an emergency fund. Furthermore, you will need to find other ways to make money.

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