I’ve only recently gotten into budgeting and since 2025 is coming up I want to try and plan ahead. My biweekly paychecks vary a lot since I work an hourly job within a school, so due to holidays and stuff I don’t get paid consistently. Right now I know an estimate of how much I’m going to make until 03/05. I wanted to pre-plan my first 3 months of the year. Is this a good idea to do? Are there any resources on how to do this?
You probably have already determined your minimum monthly needs (everything not including dining out/drinking out/movies/streaming/and non-essential purchases). Everything else you earn will be for those other needs plus savings. Hopefully, even with holidays, you earn that minimum amount every month, so you should be okay. If not, you need to increase the amount that you save in other months to help get you through the leaner months. That’s how I do it (substitute teacher–no school, no work, no pay).
@Reed
I save throughout the year so during the months of no pay I have enough for my minimum monthly needs. Would you say that doing an annual budget (or at least for the next 3 months) could be a good way for me to learn budgeting or is it better to just go paycheck by paycheck?
@Gray
Well, you need to budget around those minimum monthly needs so it seems you’re already doing an annual budget. But I don’t find that particularly useful (annual budget) for me. My monthly budget is what controls everything. As long as you know that those savings are not a surplus and need to be available during the leaner months, you should be okay as long as you stick to your monthly budget. Of course, within your savings, if you are budgeting what you need for the leaner months, you may find that there is additional money available for longer-term savings and investments, or maybe for other wants, such as a vacation trip or some fun stuff (electronics, sporting goods, clothing, etc.). For example, even during July and August, I still have the same monthly budget, I just don’t have the income. The monthly budget is just paid out of savings and not from earnings. I hope that makes sense.
For known big expenses due say yearly or quarterly it helps to divide the expected $ amount by the number of paychecks till then and put that amount aside as soon as the pay comes in, reserved for that bill. (If you have a higher than usual income month you could allocate more. Keep a running total, adding $ allocated and deducting $ when the bill is actually paid.) If you can, put an amount into savings or an emergency $ cushion as soon as the pay comes in. Keep track of what goes in and out and the current total. Try recording your (not provided for as above) expenses each day or very soon after incurring them. That is easier than having a bit batch to make sense of and record at the end of the month. Tracking cash flow can be very helpful: Net (after tax and deductions) actual income, less to savings and to big bill provisions = available until the next pay. Less spent today = available going forward (repeat whenever a new expense.) At the end you will have either a surplus amount or see that you needed to draw down savings. After a few months you will have a good idea of where money usually goes, what you could change and still have a good (or better) quality of life; and try a forward budget projection?
That’s a smart move! I’ve done something similar and it really helped me. I started by figuring out my basic monthly expenses first (like rent, bills, etc.) and then left a little extra for the stuff that changes each month. Since your pay can vary it’s good to leave some wiggle room in your budget for those slower weeks. I also use Fina Money to track things, it’s super easy and helped me get a better grip on my finances. But you can see other options too to track your spending etc.
Planning ahead for 2025 sounds like a smart move, especially with variable income like yours. I’ve found that having an annual budget helps me feel more in control, even when my paycheck fluctuates. What’s worked for me is starting with the months I know my income for—like you mentioned with your estimate through March—and building from there. I don’t try to plan every detail at once but focus on the essentials first: rent, utilities, food, and savings goals. Habit Money has been super helpful for this because it tracks everything automatically, so I can adjust my plans month to month based on how much I actually earn and spend. When I was starting out, I realized the importance of breaking the year into smaller chunks—like three months at a time. Habit’s weekly reports are a lifesaver because they keep me updated on how I’m doing without having to manually check everything all the time. Plus, when my income changes unexpectedly, it’s easy to shift my spending or saving plans without totally starting over. If you’re looking for tools or resources, I think Habit makes budgeting way less intimidating. It also sends reminders, which keeps me from forgetting about things like subscriptions or irregular bills that could throw off my plan. For your situation, focusing on the first three months sounds like a great idea, and you can always revisit and adjust as you go. Planning ahead doesn’t have to be perfect—just having a framework helps so much!