USE A CALENDAR
The one thing that has helped me with my budget and paying bills is using a calendar to list out my expenses and the amount due. I also write on my calendar which days I get paid and the budgeted amount I am using for my income on those days.
For me, I get paid on the 5th and the 20th of every month. I also have an estimated income amount that I use for my budget that I write down on those days. My worse case scenario is 80 hours per paycheck. Some of the paychecks I receive end up being for 88 or 96 hours, depending on how many days are in the month, but no matter what I ACTUALLY receive, I always budget for the minimum amount of hours that I work, which is 80 hours. I will talk about what to do if your income is different than your budgeted amount in a second, but for now, only worry about the minimum amount that you can receive for your income.
LETS LOOK AT AN EXAMPLE
In the example above, I am showing you how you would plan out your bill payments if you have daily income. For example, I am using daily cash tips. If you rely on tips, or if your income varies daily, you need to figure out what days you want to pay bills, and then from there, you need to figure out what income you need to use and what the total cost of your bills are going to be for that time frame.
In the example, I get a base paycheck twice a month (on the 1st and 15th) and I also receive daily income that varies. I choose to pay my bills on three different days, however, the last bill payment day on the 28th, I will not have to pull out cash for my envelopes because I am only covering two bills that can be paid online.
With my first bill payment date on the 5th, I have decided to pay six different bills:
Credit Card #2 Minimum Payment = $30
Dental Insurance = $28
Utilities = $150 (using an estimate based on past payments)
Netflix = $12
Car Payment = $350
Student Loan Minimum Payment = $250
I am using my base income paycheck that I receive on the 1st, as well as any daily tips or income I received up though 5th. So my total income that I would be using on my bill payment date on the 5th would be $950+$80+$75+$80 = $1,185. If you subtract all of the bills that are listed above, you have $365 leftover to use for your cash envelopes.
With my second bill payment date on the 20th, I have decided to pay six different bills:
Internet = $60
Medical Bill Minimum Payment = $25
Credit Card #1 Minimum Payment = $50
Medical Insurance = $205
Car Insurance = $100
I am using only my daily income (tips) to pay for the bills listed above since my base income paycheck that I receive on the 15th, needs to be used to cover next month's rent and childcare. So my total income that I would be using on my bill payment date on the 20th would be all of my daily tips from the 5th through the 20th $100+$75+$90+$100+$75$+$60+$90+$90+$100+$75+$90 = $945. If you subtract all of the bills that are listed above, you have $505 leftover to use for your cash envelopes.
With the tips you receive on the 21st, since it's the day after my bill payment date on the 20th, I would leave those tips in your checking account as a cushion, just in case one of the bills you pay online is bigger than expected, or you have an unexpected expense that's pulled from your checking account. I always suggest having a checking account cushion just in case.
For the last bill payment date on the 28th, you have to pay for your rent and childcare that's due on the 1st for the following month.
Rent = $850
Childcare = $200
You would use your base paycheck on the 15th and all daily tips from the 24th through the 28th, which makes your total income for your last bill payment date on the 28th =$1,315 ($950+$100+$90+$75+$100+$90). If you subtract your rent and childcare, that leaves you with $265 to use for an extra debt payment or savings contribution.
THERE'S NO RIGHT OR WRONG WAY
One of the most important things to remember about budgeting, is that there is no right or wrong way to do it. You need to figure out a method and strategy that fits with what's happening in your real life, and then make a conscious decision to stick to it.
With the example above, there are hundred or different ways you could go about paying your bills. You could use different paychecks to pay different bills. The point is, your situation is unique, and the example above is just a visual to show you ONE of the ways you could use daily income to budget your money.
If you sit down with your calendar, and decide to go about it differently, then that's okay too. Maybe you want to use all of your daily tips throughout the month to cover next month's rent and childcare, and use your base paychecks to cover all of your bills. It's a game of trial and error to find out which options work best for you because each option and scenario you choose will give you different results when it comes to how much income you have leftover to use for variable spending and your cash envelopes.