What this tool does
The Income Source Analyzer uses AI to break down your income into three key buckets: stable, growth, and at-risk. It evaluates each income source based on its reliability, predictability, and vulnerability to economic changes. The tool provides a comprehensive diversification assessment that helps you understand whether your income portfolio is resilient or vulnerable to disruption. Unlike simple income tracking, this analyzer considers the quality and stability of each dollar you earn, not just the quantity.
How it works
Enter each of your income sources with its monthly amount and stability rating. The tool categorizes income into three buckets:
**Stability Buckets:** - **Stable Income** (100% weight): Salary, pension, government jobs, long-term rental income - **Growth Income** (70% weight): Contract work, freelancing, commissions, seasonal work - **At-Risk Income** (30% weight): Gig economy, new business ventures, volatile investments
**Formula:** \`\`\` Diversification Score = (Stable% x 1.0) + (Growth% x 0.7) + (Risk% x 0.3) \`\`\`
The AI then analyzes your income mix to identify concentration risks, provide personalized recommendations, and suggest next steps for improving your financial resilience.
Who should use this
- **Multi-income earners** juggling salary plus side hustles or investments - **Freelancers and contractors** evaluating the stability of their client base - **Entrepreneurs** balancing business income with other revenue streams - **Investors** assessing how much of their income depends on market performance - **Career changers** preparing for transitions between income sources - **Financial planners** helping clients understand income vulnerability - **Anyone concerned about job security** who wants to build more resilient income
Worked examples
**Example 1 - Salaried Professional:** A marketing manager earning \$7,000/month from salary (stable) and \$500/month from stock dividends (unstable). Analysis shows 93% stable income with a high diversification score. Recommendation: maintain current stability while exploring additional growth income.
**Example 2 - Freelance Designer:** Three income sources: retainer clients \$3,000/month (somewhat-stable), project work \$2,000/month (variable), and Etsy shop \$500/month (unstable). Total \$5,500/month with 55% growth income and 9% at-risk. Recommendation: convert some project clients to retainers for more stability.
**Example 3 - Side Hustler:** Full-time job \$5,000/month (stable), Uber driving \$1,200/month (unstable), rental property \$800/month (stable). Total \$7,000/month with 83% stable income. High diversification score with healthy income mix.
Understanding your results
**Diversification Score (0-100):** - **80-100**: Well-diversified, resilient income portfolio - **60-79**: Moderately stable, some room for improvement - **Below 60**: Income stability needs attention
**Risk Level:** - **Low Risk**: Majority stable income, good diversification - **Medium Risk**: Mix of stable and variable income - **High Risk**: Significant at-risk income or high concentration
**Income Breakdown:** - **Stable %**: Percentage from reliable, predictable sources - **Growth %**: Percentage from variable but consistent sources - **At-Risk %**: Percentage from unstable or speculative sources
**Concentration Warning:** If a single source represents more than 80% of income, you have dependency risk regardless of stability rating.
Limitations
This tool provides general guidance on income diversification but cannot predict future income changes or market conditions. Stability ratings are based on typical patterns and may not reflect individual circumstances. Investment income stability varies significantly by asset type and is simplified in this analysis. The tool does not account for benefits, equity compensation, or non-cash income. Geographic factors affecting income stability are not considered. For complex financial situations or major decisions, consult a certified financial planner.
FAQs
**Q: How do I rate stability for hybrid income like commissions?** A: If you have a base salary plus commission, enter them as two separate sources: the base as "stable" and commissions as "somewhat-stable" or "variable" depending on consistency.
**Q: Should I include investment income?** A: Yes, include dividends, interest, and regular investment withdrawals. Rate dividend income from established companies as "somewhat-stable" and growth stock sales or crypto as "unstable."
**Q: What about rental income?** A: Long-term rental with reliable tenants is "stable." Short-term rentals (Airbnb) are "variable." New or frequently vacant properties are "somewhat-stable."
**Q: How often should I re-analyze?** A: Review quarterly or whenever you add/lose an income source, change jobs, or experience significant changes in any income stream.
**Q: What's a good target for stable income percentage?** A: Aim for at least 50% stable income, with 70%+ being ideal for most situations. The right balance depends on your emergency fund size and risk tolerance.
Explore Similar Tools
Explore more tools like this one:
- Where Does My Leverage Come From? — AI-powered tool that identifies inputs that actually... - What Would Increase My Income Fastest? — AI-powered tool that compares income growth options by... - Income Sufficiency Calculator — AI-powered analysis to determine how much income is... - Income-Driven Repayment Calculator — Calculate monthly payments under income-driven repayment... - Income Tax Calculator — Calculate income tax based on taxable income and filing...