Frequency of income, and how you budget it goes hand in hand.
Most workers are paid on a set schedule….weekly, bi weekly, or monthly. Per-diem workers are paid sporadically, and depending on their hours worked. Those who are self employed have busy and slower times, so uneven months. And most teachers receive an annual salary paid evenly throughout the school season., but not Summers. Seasonal workers, landscapers, snowplow drivers, etc, are paid when they work.
When the paycheck is always the same, and you receive it on a set schedule, it’s easier to budget – because you receive it evenly throughout the year.
Teachers have to budget differently, figuring the annual total income into 12 months, and as each pay period arises, part of it should be set aside immediately so in the Summer months when they don’t receive a paycheck,….there is a ‘paycheck’ set aside. Some work a side job in the Summer to add to their income during those months.
Those who are self employed should, in their busy months, set aside some of the extra money earned for when any slower months arrives… in other words, be prepared….the money you’ve set aside is there as ‘fill-in’ to add in when you have a month that is a little slower – evening it out.
Seasonal workers may, and may not, have a regular income from another job. If they do have a regular job, the seasonal job is ‘gravy’. Either way, seasonal is not always definite,
No matter how your income is received……be budget savvy. Be disciplined. Don’t let yourself get short of cash.