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Of course, now you must differentiate between which expenses are "needs" and which are "wants." Basically, any payment that you can forgo with only minor inconveniences such as your cable bill or back_to_school clothing is a want. Any payment that would severely impact your quality of life, such as electricity and prescription medicines, is a need.

Though a monthly budget is generally the most reasonable timeframe for which to set up an initial personal or household budget, there are many sources of income and expenses that do not perfectly follow a monthly schedule.For instance, you may receive a paycheck every week or two weeks, not once a month. In that case, you will want to calculate how that adds up over one month's time and write that in the appropriate row and column. You may also have certain expected or even recurring expenses that occur more or less often than monthly.

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