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.
Step Two: Limit Your Needs to 50 Percent of Your After_Tax Income. Now go back to your budget. How much do you spend on "needs" each month, things like groceries, housing, utilities, health insurance, car payment, and car insurance? According to Warren and Tyagi and their 50ቺተ rule, the amount that you spend on these things should total no more than 50 percent of your after_tax pay.