Said It Here

How to start investing with fluctuating or seasonal income

Starting to invest is overwhelming when your income changes constantly and you don't have a regular paycheck or workplace plan. People get stuck trying to balance saving cash for near-term purchases in high-yield savings accounts against putting money into retirement accounts like a Roth IRA when they only earn income for part of the year.

What people tried

Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.

  1. 1
    Saving money exclusively in a high-yield savings account (HYSA)
  2. 2
    Opening a Roth IRA and buying diversified index funds
  3. 3
    Investing in a regular taxable brokerage account
  4. 4
    Using alternative savings vehicles like I bonds or CDs
  5. 5
    Keeping savings in a checking account or traditional bank savings earning minimal interest

In their words

Unedited, most upvoted first, each linked to the thread it came from.

I want to start investing but I have no idea where to begin.source ↗

I probably need around $50k and idk if I should be aggressively saving in my HYSA because I'd like to buy something in the next 5-6 years or start investing or bothsource ↗

walrussingsatmidnite · r/personalfinance · 4 upvotes

My problem with that the Roth IRA part is they say it must be income and as a college student that only works the winter break and longer summer break so roughly 4 months out the year is that worth opening a account if minority part of the year I have no income to contribute to that account?source ↗

AdvancedTheory6664 · r/personalfinance · 3 upvotes

Where this came up

People with this problem also raised