You'll also be able to compare income and outgo to see if you're planning on spending more than you make. Well, once we get part or all the way through the budget period we'll be able to compare our actual experiences to our plan. Just like tracking a roadmap on a vacation. We'll be able to tell whether we're on course or if we need to make corrections. 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.