{"id":5150,"date":"2026-07-28T15:51:49","date_gmt":"2026-07-28T19:51:49","guid":{"rendered":"https:\/\/www.skypointfcu.com\/wph\/workarea\/?p=5150"},"modified":"2026-07-28T15:52:18","modified_gmt":"2026-07-28T19:52:18","slug":"how-to-budget-with-irregular-income-real-stories","status":"publish","type":"post","link":"https:\/\/www.skypointfcu.com\/wph\/workarea\/blog\/how-to-budget-with-irregular-income-real-stories\/","title":{"rendered":"How to Budget With Irregular Income: Real Stories"},"content":{"rendered":"\n

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.<\/em><\/p>\n\n\n\n

Maybe you chose the gig life. Think freelancer, rideshare driver, Instacart shopper, consultant, career coach, musician, tutor, etc. Maybe the economy chose for you.<\/p>\n\n\n\n

\u201cThe current labor market is not one particularly friendly to workers,\u201d says Elizabeth Renter, NerdWallet\u2019s senior economist. \u201cEmployers aren\u2019t doing much hiring, which makes nontraditional jobs even more appealing than usual.\u201d<\/p>\n\n\n\n

Maybe you\u2019re a seasonal worker, server or a commission-based employee. Whatever the case, you\u2019re seeing your paycheck go up and down. But those bills? They\u2019re stubbornly consistent. How do you make it work?<\/p>\n\n\n\n

We\u2019re here to help. Because whether you have a boss or not, you still need to manage your finances like one.<\/p>\n\n\n\n

Set a baseline for take-home pay<\/h2>\n\n\n\n

\u201cA fluctuating income requires you to balance your spending more than people with predictable paychecks on predictable days,\u201d Renter says. \u201cIt may involve buying more staples when your income is higher, to provide for leaner times, for example.\u201d<\/p>\n\n\n\n

The key, though, is to understand exactly what it costs to cover your most pressing monthly bills in a given month so you know the minimum you must earn.<\/p>\n\n\n\n

\u201cThe worst mistake gig workers can make is planning for the best month of the year rather than the worst,\u201d Rami Sneineh, co-president of Insurance Navy Brokers, said in an email interview.<\/p>\n\n\n\n

His company, based in Palos Hills, Illinois, insures self-employed and other non-standard clients.<\/p>\n\n\n\n

He advises people with irregular income to set the lowest-earning month of the last 12 as their baseline. Then make sure that number can cover all of your needs \u2014 rent or mortgage, utilities, groceries, etc.<\/p>\n\n\n\n

\u201cYour fixed costs should never exceed this lowest amount,\u201d Sneineh said.<\/p>\n\n\n\n

Once you have your baseline, you can use that number to plug into the budgeting method<\/a> of your choice. Ideally, you\u2019ll be bringing in enough to cover some of your wants as well as savings and debt repayment.<\/p>\n\n\n\n

Save a solid portion for a rainy day<\/h2>\n\n\n\n

Speaking of saving, the unpredictability of gig work makes it even more important.<\/p>\n\n\n\n

Lucy Todd said she left full-time employment for gig life in 2021. Todd, a career coach and freelance writer in Brier, Washington, said she prioritizes emergency savings<\/a> and tries to diversify her gigs.<\/p>\n\n\n\n

\u201cYou won\u2019t make the same amount every day, week or month, and you need something to pull from when work is slower,\u201d she said in an email interview.<\/p>\n\n\n\n

A good strategy is to put at least a portion of every paycheck you get into savings. If you aren\u2019t making enough to do that, you may need to branch out.<\/p>\n\n\n\n

\u201cPlan to earn money from more than one type of gig, ideally including a mix of short- and long-term engagements, so you have both predictability and flexibility,\u201d Todd said.<\/p>\n\n\n\n

Someone who mainly drives for Uber, for example, can consider signing up for other gig apps \u2014 like Instacart<\/a> or DoorDash \u2014 to add earning opportunities while on the road.<\/p>\n\n\n\n

Plan ahead for taxes<\/h2>\n\n\n\n

When you work for a traditional employer, you probably get a regular paycheck with local, state and federal taxes withheld for you. If you make your living doing gigs, you may have to make estimated payments<\/a> to the IRS.<\/p>\n\n\n\n

Jesse Wideman, a certified financial planner in Charlotte, North Carolina, says you don\u2019t want your tax bills to be a surprise.<\/p>\n\n\n\n

\u201cI generally tell people to at least save around 25% of whatever they\u2019re earning from 1099 income<\/a>,\u201d he says.<\/p>\n\n\n\n

That percentage keeps in mind the 15.3% self-employment tax rate as well as potential state and local taxes on top, he says.<\/p>\n\n\n\n

\u201cAfter a couple of years of poor planning and massive year-end tax bills, I set up a twice-monthly automatic transfer from my bill-paying account to a high-yield savings account<\/a>, where the money sits until tax time,\u201d Todd said.<\/p>\n\n\n\n

On the flip side, when you\u2019re self-employed, there are business expenses you can claim to reduce your taxable income. If you don\u2019t know what those are, simply pull up the Schedule C (Form 1040)<\/a> \u2014 the form used to report self-employed income \u2014 to take a look, Wideman says.<\/p>\n\n\n\n

Gig drivers, for example, will want to pay close attention to vehicle-related expenses, while freelancers should track costs associated with having a home office.<\/p>\n\n\n\n

Budget for healthcare<\/h2>\n\n\n\n

Company-sponsored health insurance is another perk of full-time employment, and something you might have to plan for.<\/p>\n\n\n\n

If you\u2019re not already covered by a spouse\u2019s or parent\u2019s plan, you can purchase coverage through the health insurance marketplace<\/a>.<\/p>\n\n\n\n

It might cost more than you think. Todd said her marketplace healthcare premium has gone up a lot in recent years.<\/p>\n\n\n\n

\u201cBut a few extra hundred dollars a month for the freedom of gig work, compared to full-time employment just for the healthcare, remains majorly worth it to me,\u201d she said.<\/p>\n\n\n\n

Plus, you may be able to deduct the cost of health insurance premiums on your taxes if you\u2019re self-employed.<\/p>\n\n\n\n

Think about the future<\/h2>\n\n\n\n

\u201cIn financial planning, you want to set up a foundation first,\u201d Wideman says.<\/p>\n\n\n\n

He says these three areas are bedrock:<\/p>\n\n\n\n