Survey: More Than 80% of Gig Workers Face Unpredictable Income

Most Gig Workers Experience Unpredictable Income

Being able to work as much or as little as they want, having the flexibility to do different kinds of work across multiple gigs and earning extra money are the biggest financial benefits that surveyed gig workers reported. That flexibility comes with a flip side, however.

Gig workers reported they often can't predict how much they will earn in coming months due to seasonal demand and fluctuating hours. Meanwhile, payment delays can make it hard to plan for expenses. Nearly 3 in 4 survey respondents report experiencing income swings of 25% or more, while 43% say neither the timing nor amount of their income is predictable.

The Biggest Financial Challenges Facing Gig Workers

Planning ahead—and getting ahead—are the biggest financial challenges gig workers struggle with. Gig workers in our survey reported that financial planning and saving money are difficult as a result of unpredictable income.

Respondents cited essentials including rent, utilities, automotive fuel and maintenance, cellphones and internet service as the costs they most often have trouble covering due to irregular income.

Question: What is your biggest challenge as a gig worker or independent worker from a financial standpoint?

Gig workers surveyed savor the freedom their work brings, with 60% describing gig work as "flexible" and 28% as "empowering." However, the downside is financial uncertainty. One-third of respondents say gig work is "uncertain," 29% describe it as "stressful" and 21% say it's "unstable." More than 70% of survey respondents are at least moderately worried about income swings, and 30% report being "very" or "extremely" worried.

How Gig Workers Manage Irregular Income

Gig workers use several strategies to ensure their basic costs are covered, including maintaining a financial cushion in an accessible account and paying bills early when they have extra funds. However, some take approaches that could be financially risky, such as putting expenses on a credit card.

Question: How do you typically plan your finances when your income changes from week to week?

How Gig Workers Can Prepare for Cash Flow Gaps

If you're struggling with unpredictable income, try these tips to help gain control and better manage cash flow shortages.

• Make a budget. To budget with irregular income, estimate your average income based on past information, and approximately when you will get paid. Identify your basic expenses (such as rent, car payments and food) and create a budget that prioritizes these essential bills.
• Use budgeting apps to track your income and expenses. Monitoring income and spending in real time is important when your pay is unpredictable. Budgeting apps make this easy to do in real time and can help you catch potential shortfalls early enough to avoid missed payments, late fees or bank overdrafts.
• Build a one-month income cushion. Having a month's worth of essential expenses in savings can help you cover your bills even when gig work payments arrive late. Once you've accomplished that goal, work toward building an emergency fund that can cover three to six months' worth of essential expenses.
• Make a savings plan. Commit to transferring a percentage of each deposit into a savings account. Your bank may let you automate this process, or you can do it manually.
• Diversify your income streams. Multiple gigs can give you more financial flexibility: If one gig slows down, income from the other can fill the gap. Different gigs may also pay on different schedules, which can mean more frequent paydays.

Even with careful planning, you may face unexpected income gaps. When that happens, try to avoid using a credit card as your emergency fund. Carrying a balance on your credit card could lead to high-interest debt, so it's best to choose this option only if you're confident you can pay the balance in full.

A short-term advance on your next paycheck can be a more affordable way to cover essential expenses without worrying about high interest rates. For example, Experian Cash^™ powered by Brigit^⊜ offers advances from $25 to $250 depending on your eligibility, with a flexible repayment schedule and no interest charges, late fees or penalties.

The Bottom Line

The gig economy has transformed the face of work, with millions of Americans relying on gig work for some or all of their income. Although many gig workers in our survey said they enjoy the flexibility their work offers, they also indicated struggles with financial challenges around income uncertainty. Committing to a savings plan, diversifying income streams and following a budget that accounts for income fluctuations can help gig workers meet their financial obligations and reduce their financial anxiety.

^⊜Experian Cash^™ is powered by Brigit. Not all users will qualify. Depending on eligibility, advances range from $25 to $250. Express delivery is optional and a fee may apply. Monthly membership fee may apply, cancel anytime. Not available in all states. You are not required to enroll in a paid membership to receive an advance. Users that are eligible for an advance may access an advance with a free Experian membership. Terms apply.