Now that we know a bit about budgets, let's look at JD's question. Most people have a steady stream of income. Yes, they could get a raise in October, but income will stay steady from week to week. Usually the biggest issue is what to do with the month that includes an extra paycheck. With a steady income the biggest trick is to try to level out expenses.
Every family has a couple of expenses that only occur once or twice a year.
Property taxes, holiday gifts, auto repairs are all good examples. You handle these items by estimating the yearly expense and then setting aside an equal amount each week or month that will add up to the yearly amount. No, in fact it makes using a budget even more important. Just as you're more likely to use a roadmap when you don't know where you're going, you need a budget when your income varies throughout the year. The strategy is simple.