American Workers Are Riding the Income Roller Coaster
Uneven and unpredictable paychecks are on the rise for American workers. Income volatility doesn’t just make it harder to plan; it makes every unexpected expense a potential crisis.
Unpredictable income is especially rough on low-income workers, with nearly half of people making under $25,000 dealing with unpredictable paychecks. (Kali9 / Getty Images)
From social media personal finance influencers (“finfluencers”) to budgeting book guides, there’s been a recent explosion in popular money advice geared toward ordinary people. While the details vary, the basic blueprint is the same: budget carefully, build emergency savings, and plan ahead.
But there’s one common factor that makes following the blueprint nearly impossible: volatile income. It’s hard to budget when you don’t know whether next month’s paycheck will cover your basic expenses, let alone leave anything left to save.
Millions of Americans work hard but still struggle to make ends meet each month because their income bounces unpredictably up and down. That’s the takeaway from a new study by Julie Yixia Cai and Emma Curchin, researchers from the Center for Economic and Policy Research, a progressive Washington think tank. Their research reveals that having a volatile income undermines financial security for workers across all income levels.
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