Which Is Better Weekly Or Monthly Income?

Different jobs pay in different ways, some weekly, some monthly. Generally, full-time positions where you earn a set amount will be paid monthly, such as my content marketing job. Whereas shift work, low contracts or roles in industries such as hospitality or retail can be paid weekly. As an electrical contractor, Luke gets his pay weekly. While you can’t control how your employer pays you, you can control how you pay yourself. But which is better weekly or monthly income?

In our household, we use a mixture of both types of pay. I prefer to have a weekly budget that may be lower but gets topped up regularly. Luke prefers his spending money in a lump sum once a month.

There’s no right and wrong decision to make, it entirely depends on your financial situation and what suits your style best.

Weekly or monthly income?

Pros of monthly pay

• Predictable budgeting
  This can be a pro of both methods, but with monthly pay, you know how much money you have to last the whole month. This way you can can create a solid budget
• It’s easier to make bigger purchases
  There may be some purchases or expenses that can’t be afforded every week so they need to be saved for over the month. Whereas if you pay yourself monthly you may have the money straight away
• Easier to set up regular payments
  If you have regular payments every month you can set these up to be paid the day after payday. If you get weekly money this can be more difficult as you’d either have variable expenses each week or you’d need to save the same amount each week to cover them
• Can be easier to save
  If you’re saving towards a bigger goal you may find it more encouraging to be able to save a larger amount once a month, than smaller amounts each week

Pros of weekly pay

• Predictable budgeting
  This is also a pro of weekly pay as you can create a budget knowing how much you’ll have for the month ahead. Your budget may look different, and it will vary more often, but it’s still easy to do
• Less temptation to spend
  As you get less money in one go you may feel less temptation to spend it all. This is one of the biggest reasons I love weekly money. If I got a bigger lump sum monthly I’d be tempted to just spend it
• Improved cash flow
  If you do decide to spend all your money, then you never have to wait more than seven days for it to be topped up. I remember getting monthly pay when I was younger, and the rest of the month’s wait for payday felt like forever
• Easier to factor in last-minute expenses
  If something comes up for the following week it’s much easier to factor it into a budget that’s not been actioned (as it’s the next week’s money), than trying to squeeze it into a current budget. I have a mini-budget each week and find it easy to move things around when something unexpected comes up
• Easier to budget
  Only having to manage one week’s money can make it easier and quicker to budget. Then it’s also easier to track expenses and spending

How you can make your income monthly when you’re self-employed/ freelance/ have a variable income

If you don’t get a regular income then it can be hard to pay yourself with any regularity. But it is possible.

Look back at all your previous month’s incomes, and work out the average you get paid each month (or week if you want weekly money). This may vary massively, but the average is your key.

Firstly make sure all your payments come into an account that’s not used for anything else i.e. bills/ tax payments/ general spending. Then for the very first month/week don’t touch any of the money coming into your account. This may be tough and take you some time saving to be able to afford this.

Figure out a ‘payday’ for yourself, I’d suggest the 1st of the month or every Monday if you choose weekly. Then pay yourself from your income account that average income. If that month/week you’ve earned more, leave it in the account as this will then cover any time you earn less (hence working out the average).

Having this payday means you can then budget in the same way as someone with a fixed income. You can move all your bills/ fixed expense money into an account, then arrange any savings/ investments, and finally have your spending money

Do you have weekly or monthly spending money?