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Navigating life with an income that fluctuates is tricky — even if it ebbs and flows with some predictability during certain times of year or when the tourists come to town. You teach and have to cobble together odd jobs during the summer. Or you work in a field with peak seasons, like landscaping in the spring or retail during the holidays. Maybe you’re a freelancer dependent on your clients’ fortunes or a realtor who works on commission. Perhaps you’ve lost a job — or two or three — since the pandemic upended so much of what we took for granted. No matter the reason for it, it’s quite common to lack a steady paycheck. In 2024, 29% of U.S. adults had income that varied at least occasionally from month to month, including 59% of the self-employed and 41% of those doing gig work, according to the Federal Reserve’s latest Survey of Household Economics and Decisionmaking. An irregular income requires extra discipline and planning. But there are ways to make it work. Here are five things to do to maximize the ups and downs. 1.    Establish a buffer account to smooth out your income. Estimate the total cost of your basic monthly living — rent or mortgage, utilities, food, car payment, gas, etc. — with a free budgeting app (we prefer SoFi Relay). Whenever you earn more than you need to cover that baseline amount, set the extra aside in a buffer account to help cover leaner months. (Note: Don’t try to predict an unpredictable income — by definition, there’s a good chance you’ll be wrong. Instead, once you’ve been able to maintain a decent buffer for several months, consider increasing the baseline number to include a fixed contribution toward college, retirement or other financial goals as well as a realistic budget for nice-to-haves.) 2.    Scale your spending. Spending less when you’re earning less may sound obvious, but what about spending more when you’re earning more? Scaling your budget up and down isn’t just about lifestyle decisions like whether to eat out. It can be more extensive – if you plan properly.

•   Make a list of expenses you can hold off on when your income is low, like home maintenance, non-urgent doctor’s appointments, or car repairs. Leave them for when you have a higher-earning month.

•   Buy non-perishable supplies in bulk amounts during higher-earning months. You can take advantage of bulk prices and have enough to last you through the leaner months.

•   Put a bonus or big commission into your retirement account so you won’t worry about not contributing when money is tighter. 3.    Revisit your W-4 and automatic contributions frequently. Automation can be useful in many situations, but not when your income is changing a lot.

•   If you have at least one job where taxes are withheld from your paycheck, make sure to keep your W-4 updated by using the IRS’s Tax Withholding Estimator. Adding or losing a job can skew the amount that’s withheld, reducing your paychecks unnecessarily or setting you up for a big tax bill.

•   Adjust any automatic contributions up or down as needed (or make them manually instead.) This would include contributions to retirement accounts, college savings accounts, investment apps, high-yield savings accounts, Health Savings Accounts or Flexible Spending Accounts. 4.    Consider government assistance. You don’t have to have a chronically low income to qualify for financial assistance. Eligibility is often based on your recent income, so an employment gap or dry spell could qualify you. The key is not to assume anything. Even if you’re still employed, own a home or have a retirement account, check the rules in your state for:

•   Unemployment insurance

•   SNAP (groceries)

•   Fuel assistance

•   Medicaid (insurance)

•   Other forms of financial aid (like IRS Free File, YMCA memberships, or Amazon Prime subscriptions.) Extra help could be a lifeline — even if it’s just for a few months or on and off when you’re having a rough patch. 5.    Hit ‘pause.’ You probably have memberships or subscriptions that are not essential – especially when money is tight. But you don’t have to get rid of them altogether. Whether it’s news, a streaming service, or a meditation app, avoid the hassle of cancelling and signing up again by pausing or freezing your subscription. If the pause is temporary, make sure to mark the resumption date down on your calendar.

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