Irregular income is income that does not come at regular intervals or in consistent amounts. It varies in frequency and amount, making it unpredictable compared to a fixed, steady salary. This kind of income can fluctuate month to month or seasonally, requiring more careful budgeting and planning.
Description of Irregular Income
Irregular income is income with inconsistent timing or variable amounts, such as being paid only when a project is finished or earning different sums each month. This can make managing finances and budgeting more challenging because the amount earned and when it is received cannot be reliably forecasted.
Examples of Irregular Income
- Seasonal work (e.g., agricultural harvesting, holiday retail jobs)
- Freelance or contract work (e.g., graphic design, writing, consulting)
- Gig work (e.g., ridesharing, delivery jobs)
- Commission-based sales jobs
- Tips from service-industry jobs (e.g., waitstaff, bartenders)
- Self-employment income
- Part-time hourly jobs with fluctuating hours
- Bonuses, stock options, or dividend income
- One-time payments or selling goods online
People with irregular income often average their earnings over a period of time to estimate monthly income for budgeting purposes and may set aside extra money in high-earning months to cover expenses during lower-earning periods.
