Expense Management6 min read

Building an Emergency Fund on Irregular Income

Learn strategies for building and maintaining an emergency fund when your income varies month to month as a gig worker.

Michael Torres

Financial Advisor · August 10, 2024

Why Gig Workers Need Emergency Funds

With irregular income, having financial reserves isn't optional—it's essential for survival during slow periods.

How Much Should You Save?

Recommended Amounts:

Minimum: 3 months of expenses

Ideal: 6 months of expenses

Conservative: 12 months of expenses

Calculating Your Target

List all monthly expenses

Include quarterly/annual expenses (divided monthly)

Add 10% buffer for unexpected costs

Multiply by your target months

Strategies for Saving on Variable Income

The Percentage Method

Save a fixed percentage of every payment

Start with 10%, increase over time

Automate transfers when possible

The Surplus Method

Determine your minimum monthly needs

Save everything above that amount

Best for those with highly variable income

The Average Method

Calculate your average monthly income

Live on 70-80% of that average

Save the difference

Where to Keep Your Emergency Fund

Best Options:

High-yield savings account

Money market account

Short-term CDs (laddered)

Avoid:

Checking accounts (too accessible)

Investment accounts (too risky)

Cash at home (no interest, risk of loss)

Building Habits That Stick

Start small—even $50/month helps

Automate savings when you can

Treat savings like a bill

Celebrate milestones

When to Use Your Emergency Fund

Appropriate Uses:

Medical emergencies

Essential repairs

Extended slow periods

Job-related emergencies

Not Emergencies:

Planned expenses

Wants vs. needs

Investment opportunities

GigTracker helps you understand your income patterns to build a realistic savings plan.

Share this article

Share on Twitter Share on LinkedIn

Ready to take control of your gig finances?

Join thousands of gig workers who use GigTracker to manage their income, expenses, and taxes.

Get Early Access

Get the latest gig economy tips

Subscribe to our newsletter for tax tips, productivity hacks, and industry insights delivered to your inbox.

Expense Management7 min read

Retirement Planning for Gig Workers: Start Saving Today

No employer 401k? No problem. Learn about retirement savings options available to self-employed and gig workers.

Michael Torres

June 1, 2024

Expense Management6 min read

Mileage Tracking Tips: How to Maximize Your Tax Deductions

Learn how to properly track your business mileage to maximize tax deductions. Includes IRS requirements and best practices for gig workers.

Sarah Mitchell

November 8, 2024

Expense Management9 min read

Expense Tracking Guide for Professional Photographers

A comprehensive guide to tracking and deducting business expenses as a professional photographer. Maximize your profits and minimize tax burden.