Aug 11, 2025
When Sarah Jessica Parker moved to New York City as an 18-year-old, she didn’t have fame or fortune — just some small savings and irregular income from acting gigs.
“I needed to support myself,” the Sex and the City star shared in a recent episode of the Call Her Daddy podcast.
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Though she managed to stay afloat, living with a fluctuating income was challenging.
“I knew exactly how much money I had in the bank and I took it out like very judiciously,” Parker said. “I tried to get by on $40 for three days… it’s such a relief to be able to pay your bills.”
Adjusted for inflation, the $40 Parker budgeted in 1983 would be equivalent to about $130 in 2025, according to the U.S. Bureau of Labor Statistics’ CPI inflation calculator. Sticking to this strict budget helped her survive financially while building her career.
If you’re dealing with irregular income, you’re not alone. Here are some smart ways to manage your finances when your income isn’t consistent.
How to budget with a fluctuating income
The first step to budgeting with an irregular income is to determine your average monthly earnings. Even if your income varies, knowing your annual total and reviewing the last several months can help you estimate what you typically bring home.
To play it safe, base your lowest monthly income in recent history. For instance, if you earn between $4,000 and $6,000 a month, build your budget around the $4,000 figure. If your income varies even more significantly and you don’t have the savings to fall back on, consider adjusting your budget monthly to stay on track.
Next, list your non-negotiable expenses — your “bare bones” budget. These might include rent, food, transportation, healthcare, and other essential costs. Fit these into your conservative monthly budget, even if that requires major life changes, like downsizing or switching to a more affordable car.
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This bare bones budget gives you a baseline for how much you need to earn each month to cover essentials. However, life includes more than just the basics.
To plan for discretionary spending, consider using the 50/30/20 rule:
- 50% for needs
- 30% for wants
- 20% for savings and debt repayment
A spending tracker can help you stick to your plan and avoid overspending.
While it’s tempting to focus solely on getting by, building long-term stability is key. That starts with an emergency fund. Around 2 in 5 Americans can’t cover an unexpected $1,000 expense, according to a U.S. News survey — so if you’re in that group, you aren’t alone.
Start small, if needed. Even a few hundred dollars in savings can offer a buffer when your income drops. Over time, aim to build up several months’ worth of expenses to better weather financial uncertainty.
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The decline of steady full-time employment
Sarah Jessica Parker chose to go into acting, an industry known for unpredictable income. But today, millions of Americans face irregular earnings, no matter their career path.
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The number of freelancers in the American workforce has exploded. In 2024, 72.7 million Americans participated in the freelance economy, according to a recent study. And, as of July 2025, 4.7 million were working part-time despite wanting full-time jobs.
While freelancing offers some perks — such as flexibility — there are trade-offs. About 70% of freelancers cite work-life balance as a key reason for choosing gig work. But many lack employer-provided benefits, pension, or job security. The same holds true for many part-time workers.
With less stability, it’s common for freelancers to experience sharp fluctuations in income, often described as a “feast or famine” cycle.
Millennials and Gen Z workers are navigating this shift most directly. Millennials made up around 45% of the freelance workforce in 2023, according to Statista data. Gen Z is following suit, increasingly turning to freelance work, either full-time or on the side.
As more workers embrace freelance and gig work, younger generations may face greater financial fragility than previous ones, who often spend years with a single employer.
If you’re living with an inconsistent income, intentional budgeting and building savings during high-earning months can help create more long-term financial stability.
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Sarah Sharkey is a personal finance writer who enjoys helping people make optimal financial decisions for their situation. She loves digging into the nitty-gritty details of financial products and money management strategies to root out the good, the bad, and the ugly. Her goal is to help readers find the best course of action for their needs.
