More than half of Canadians earning income through self-employment, gig work or side hustles used credit cards or lines of credit to pay for everyday expenses over the past year, as unpredictable earnings continue to create financial challenges, according to a new report from Money Mentors.
The organization’s 2026 Self-Employment Report, conducted in partnership with Angus Reid, found that 53 per cent of surveyed Canadians who reported self-employment or other paid work used credit to cover groceries, bills and other regular expenses because their income was lower or less predictable than needed.
The survey also found that 51 per cent experienced an income shortfall at least once in the past year, while 23 per cent said they fell short of what they needed to cover regular living expenses most months or every month.
Income uncertainty leads to financial trade-offs
The findings point to the financial pressures facing Canadians who rely on self-employment income, with many reporting that they have reduced savings, cut household spending or turned to other sources of money to manage regular expenses.
Over the past 12 months, 54 per cent reduced or stopped putting money into savings, while 47 per cent cut back on groceries or other household essentials. Another 45 per cent used savings or emergency funds to cover regular living expenses.
The report found that 23 per cent delayed or missed a bill payment and 22 per cent borrowed money from family or friends. Meanwhile, 18 per cent said they did not set aside enough money to cover the income tax or GST/HST they owed.
Women reported greater difficulty managing income fluctuations, with 60 per cent experiencing an income shortfall at least once during the year, compared with 43 per cent of men.
“When more than half of surveyed Canadians earning self-employment income have used credit to cover everyday expenses, it’s clear this goes beyond budgeting. Financial literacy is important, but it can only go so far when income is unpredictable and bills keep coming. People need support before cash flow challenges turn into bigger financial problems,” said Stacy Yanchuk Oleksy, CEO of Money Mentors.
“Through Money Mentors’ F.R.E.S.H. program, Alberta entrepreneurs and small business owners can access free, one-on-one financial guidance to better understand their options and manage financial challenges. There’s no easy fix for unpredictable income, but knowing where to turn for help is an important first step.”
Savings and long-term financial goals under pressure
The survey also identified concerns about financial security, with many respondents reporting limited savings to cover expenses if their income were to stop.
Nearly half (46 per cent) said they could cover no more than two months of regular expenses using their savings if all their income stopped immediately. That included 13 per cent who reported having no savings.
Unpredictable earnings have also affected longer-term financial planning. More than two in five respondents (41 per cent) had delayed, stopped or reduced contributions toward investments. Another 37 per cent had done the same with retirement savings, while 36 per cent had reduced or stopped contributions toward an emergency fund.
The financial pressures were also reflected in respondents’ personal well-being. Nearly half (48 per cent) said they felt anxious or overwhelmed about their self-employment income or finances, while 28 per cent reported losing sleep.
One in five respondents (20 per cent) said they had avoided taking time off, including sick days or vacation, because they could not afford to lose the income.
Money Mentors offers financial guidance for entrepreneurs
The report was released as November marks Financial Literacy Month, with Money Mentors encouraging Canadians earning self-employment income to prepare for fluctuating earnings, set aside money for taxes and build emergency savings.
The Alberta-based organization offers F.R.E.S.H., or the Financial Reset Program for Entrepreneurs & Small Business Owners, which provides free, one-on-one financial check-ins, guidance on financial options and referrals to additional resources.
Money Mentors also provides free, confidential credit counselling and is Alberta’s exclusive provider of the Orderly Payment of Debts program.
The organization describes itself as Alberta’s only non-profit credit counselling agency and says it has worked with Albertans for more than 25 years to help them manage debt, handle their finances and plan for the future.
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