Variable Income Stress? Find Your Inner Zen with Tips to Stay Calm

 


Guest Post by Ann Robinson, LCSW at Two Rivers Therapy & Consulting in Colorado


Variable Income Does Not Mean Unstable Income

In a world where financial stability can feel as elusive as a unicorn, one particular challenge that many individuals face is the rollercoaster ride of variable income. The unpredictability of irregular income examples can take you from feast to famine and everything in between, causing a fair share of anxiety and stress. However, embracing uncertainty and understanding the importance of staying calm is crucial to avoid financial stress impacting your mental and physical health. 

Understanding Variable Income

Defining Variable Income: From Feast to Famine and Everything in Between

Variable income, also known as unstable income or irregular income, refers to earnings that fluctuate over time. Unlike traditional employment with a consistent paycheck, variable income examples include freelancers, entrepreneurs, commission-based workers, seasonal employees, and (ahem) private practice therapists. These individuals often experience income volatility due to factors such as client demand, market fluctuations, or project-based work. Since these factors are hard to plan for or mitigate, our strategy is to anticipate and plan for them to happen. That way, we’re ready when our income drops (or spikes) and can act accordingly.

The Thrill and Uncertainty: Pros and Cons of Variable Income

Although variable income can be an exciting prospect with its potential for high earnings and flexibility, it also comes with its fair share of uncertainties. On the upside, variable income allows for independence, the opportunity to pursue passion projects, and the potential to earn more than a fixed salary. However, it also brings financial instability, the need for thinking ahead  and to plan (not panic) when there are lean periods.

Breaking the Paycheck Mentality: Shifting Your Mindset for Success

To navigate the challenges of variable income, it's essential to break free from the traditional paycheck mentality. Instead of relying on a set amount of income every month, individuals must adopt a mindset that embraces the ebb and flow of earnings. Shifting your perspective to view variable income as a path to personal and financial growth can empower you to tackle stress and uncertainty head-on.

The Three Best Ways to Stay Calm With Irregular Income

If an irregular income causes you to reach of Pepto more than it excites you, you might need a few strategies to help take the edge off. As a therapist, some of my favorite calming techniques from the therapy room are using tools like acceptance, releasing control, and riding the waves of uncertainty.

1: The Power of Acceptance: Embracing Unpredictable Income

Accepting the inherent nature of variable income is vital to maintaining calm and security with the natural ups and downs. Understand that not every month will be the same and that fluctuations are a normal part of this financial journey. When embracing the unpredictable, you can alleviate stress and cultivate a sense of calm.

2: Letting Go of Control: Finding Peace in the Unknown

Attempting to control every aspect of variable income is an exercise in futility. Instead, focus on what you can control—your actions, your mindset, and your financial habits. By releasing the need for absolute control and surrendering to the unknown, you open yourself up to new opportunities and reduce anxiety.

3: Navigating the Waves: Developing Resilience in the Face of Uncertainty

Building resilience is essential for thriving in a variable income landscape. Develop strategies to bounce back from setbacks and adapt to changing circumstances. Cultivate a growth mindset that embraces challenges as opportunities for growth. With resilience as your anchor, you can ride the waves of uncertainty with confidence and composure.

Practical Strategies for Staying Calm with a Variable Income

Building a Financial Cushion: Creating Stability in an Unstable World

  • Emergency Fund. Aim to establish an emergency fund to provide a buffer during lean periods. Save some of your earnings during high-income months to create a financial cushion that can tide you over when income is sporadic. This fund acts as a safety net, reducing stress and allowing you to stay calm during times of financial uncertainty. Identify a safety net that feels good for you to reduce feelings of panic. 

  • Budgeting with Variable Income: Adjusting Your Finances to Match Your Income. Traditional budgeting methods may not be suitable for variable income. Instead, adopt a flexible budgeting approach that accounts for income fluctuations. Prioritize your essential expenses, be mindful of discretionary spending, and adjust your budget as your income varies. By adapting your financial plan to your income reality, you can maintain stability and avoid unnecessary stress.

  • Diversifying Your Income Streams: Spreading Your Risk and Finding Stability. Reducing dependence on a single income source is a wise strategy for managing variable income stress. Explore ways to diversify your income streams, such as taking on side gigs, creating passive income streams, or investing in income-generating assets. By diversifying, you can mitigate the impact of income fluctuations and create a more stable financial foundation.

Six Additional Income Streams for Entrepreneurs

Self-employed professionals have various opportunities to diversify their income streams beyond traditional services. Here are some examples of additional income streams for folks with a variable income:

  1. Workshops and Training Programs: Conduct workshops, seminars, or training programs on specific therapeutic techniques, self-care, or mental health topics. Offer these sessions to other professionals in your field or the general public to share your expertise and generate additional income.

  2. Writing and Publishing: Write articles or blog posts on your field of expertise. For therapists, it could be issues related to mental health, personal development, or therapy. Publish your work on your platform, or submit articles to reputable publications. [From Lindsay: If you need help to pitch your work as a paid freelancer, check out Melanie Lockert’s great guides here! She has guides on how to pitch on Twitter, crafting your story to get more press, and more!]

  3. Online Courses and E-Learning: Develop and offer online courses or e-learning programs on topics you know more about than the average person.

  4. Consultation and Supervision: Provide clinical consultation services to other professions in your field. Offer support, guidance, and expertise to colleagues in the field, either individually or in groups.

  5. Coaching Services: Expand your services beyond therapy and offer coaching services to clients who may not require traditional counseling. Focus on areas such as career coaching; what would you have wanted to know about your field starting out?

  6. Adjunct Professorship/Partnerships with Universities: Apply to be an adjunct professor at a local (or online) university. I have gained (financially and professionally) from my part-time contract as a field liaison with the Colorado State University School of Social Work!

Embracing Mindfulness, Gratitude, and Self-Care for Financial Peace

There are ways we can take care of the stressful side of an irregular income but focusing on things like mindfulness, practicing gratitude, and applying financial self-care tactics. 

  1. Mindful Money Management: Cultivating Awareness and Intentionality. Practicing mindful money management involves being fully present and intentional with your financial decisions. Monitor your spending habits, identify areas of unnecessary expenses, and make conscious choices aligned with your values and goals. By developing awareness and intentionality, you can cultivate financial peace amidst the chaos of variable income.

  2. Finding Gratitude in Uncertainty: Shifting Your Perspective for Contentment. In the face of financial uncertainty, finding gratitude can be a powerful tool for maintaining calm. Focus on the positives in your life and appreciate the opportunities that variable income brings. Adopting a mindset of gratitude allows you to shift your perspective and find contentment, even during challenging times.

  3. Practicing Self-Care: Nurturing Your Well-being Amidst Financial Stress. Variable income stress can take a toll on your overall well-being. Prioritize self-care practices such as exercise, meditation, adequate sleep, and spending quality time with loved ones. Engaging in activities that bring you joy and fulfillment will help you maintain balance, reduce anxiety, and stay calm throughout your financial journey. For 37 ways to practice financial-self care, check out this video and the corresponding blog post.

Tools and Resources for Financial Stability

  • Automated Finances: Streamlining Money Management in an Unpredictable World. Leverage technology to automate your financial processes. Set up automatic bill payments, savings transfers, and investment contributions to ensure you stay on track with your financial goals. By streamlining your money management, you can reduce the cognitive load and stay focused on what matters most.

  • Budget Software for Variable Income: Tracking, Budgeting, and Forecasting Your Financials. Utilize financial apps and platforms designed specifically for individuals with a variable income. These tools can help you track your income and expenses, create budgets that adapt to your fluctuating earnings, and forecast future cash flow. By harnessing the power of technology, you can gain valuable insights and make informed financial decisions.

  • Low Cost or No Cost Budgeting Tools for People with Variable Income. As irritating as it might be, tracking your income and expenses is incredibly important to deal with the financial ups and downs of having a variable income. With a sea of budgeting and financial tracking apps to choose from, I’ve curated my top three low-cost or no-cost options here.

    1. YNAB (or You Need a Budget): This popular budgeting app focuses on giving every dollar a job, helping you allocate your variable income effectively. YNAB offers goal tracking, customizable budget categories, and real-time device syncing. 

    2. Mint: Mint is a comprehensive personal finance app that can accommodate variable income by allowing you to set flexible budgets and track your income and expenses. It provides automated transaction categorization, bill reminders, and financial goal-setting features.

    3. PocketSmith: offers advanced cash flow forecasting capabilities, making it an excellent choice for individuals with variable income. Some of the features that may be helpful are cash flow forecasting, scenario planning (for you Plan A-Zers), goal tracking, and a calendar view of cash flow over time.

Seeking Professional Help:

When and How to Consult Financial Experts

There's no shame in seeking professional guidance when navigating the complexities of variable income. Consider consulting with financial advisors or accountants who specialize in working with individuals with irregular incomes. They can provide personalized advice, help you optimize your finances, and offer strategies tailored to your unique situation.

Dealing with Unpredictable Income: Strategies to Bridge the Gaps

When income is unpredictable, it's important to develop strategies to bridge the gaps. Set aside some of your earnings during high-income periods to supplement lean months. Explore alternative income sources or consider part-time work for a steady income stream. You can maintain stability and peace of mind by proactively managing inconsistent cash flow.

Managing Debt and Obligations: Finding Balance in a Variable Income Reality

Variable income can make managing debt and financial obligations challenging. Prioritize your debts strategically, focusing on high-interest obligations first. Communicate with lenders and creditors to explore flexible repayment options during periods of low income. By staying proactive and finding balance, you can effectively manage your financial obligations without sacrificing your well-being.

Ways to Stay Calm: Mental Health Support for Financial Stress

The stress of variable income can take a toll on your mental health. Seek support from friends, family, or mental health professionals to cope with fear and anxiety. Practice mindfulness techniques, engage in stress-reducing activities, and consider therapy or counseling if needed. Remember that your mental well-being is just as important as your financial stability.

Plan for Success to Avoid Financial Stress Taking Over Your Health & Wellness

Embracing the journey of variable income is about finding peace and fulfillment beyond the numbers. By adopting a zen mindset, implementing practical strategies, and leveraging the right tools, you can stay calm amidst the storm of unpredictable income. Remember, the path to inner peace starts with embracing the uncertainties and finding your unique way to stay centered and financially secure.

Ann Robinson (she/her) LCSW, is a trauma therapist, coach, and clinical supervisor in Fort Collins, Colorado. Ann has a knack for working with womxn who exudes enough grit and resilience to make Wonder Woman blush. Her secret weapon? Incorporating humor into therapy sessions because, let's face it, life's too short to take everything so seriously. Ann's got your back if you're ready to cope with life stressors without burning the candle at both ends. When she's not busy helping her clients navigate life's ups and downs, you can find her co-owning Two Rivers Therapy & Consulting in Colorado.

 
Previous
Previous

Hispanic & Latine Personal Finance Content Creators

Next
Next

How to Set Personal Money Goals So You Can Live Your Best Life Now