Monthly Budget Vs. Quarterly Budget

The type of budget you make may depend on your income.

Making a budget is a great way to take control of your spending and to give financial peace of mind. When comparing a monthly budget and a quarterly budget, you should take account of possible fluctuations in income and how disciplined you are with money.

Monthly Budget

A monthly budget may help you to keep a tighter rein on spending. It may be beneficial for students or people on a low income who need to be disciplined when it comes to finances and who are dividing their finances between semesters and seasonal work. A monthly budget may also help freelancers or people on short-term contracts whose income is unpredictable.

Quarterly Budget

A quarterly budget may be suitable for people who are employed full-time and are reasonably sure what their annual income will be. It may also be realistic if you want to set money aside for emergencies. People whose income depends on seasonal trends may also find it more realistic to make a quarterly budget.

Personal Considerations

The choice between a monthly and quarterly budget may depend on how good you are with money. Impulse buyers may find that making a monthly budget and sticking to it can help them cut down on unnecessary purchases.

References

• University of Puget Sound: A Monthly Budget
• MoneyInstructor: Preparing a Realistic Budget