How to Budget Bi-Weekly Paychecks
The bi-weekly paycheck arrives twice a month, and it can confuse budgets that are typically organized on a month-by-month basis. With a little planning, those looking to save money, pay their bills and have money left over for life's little pleasures can organize bi-weekly budgets and spending limits that encourage responsible money management.
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Instructions
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Make a list of the bills due every month, including the name of the bill and the amount you must pay monthly. To effectively budget bi-weekly paychecks, you'll have to decide which paycheck will pay which bills. Divide your list of monthly bills into two categories. The first category will be paid using the funds from your first paycheck of the month; the second category will be paid with the funds from your second paycheck.
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Add up your fixed expenses. Fixed expenses are debts incurred every month. These can include a mortgage, groceries or utility fees. Divide the total fixed expenses by two. This number is your bi-weekly fixed expense cost.
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Add up the amount of the bills you have decided to pay with your first paycheck. Add this total to your bi-weekly fixed expense cost. Subtract the final number from the amount of the month's first paycheck. This number is your first bi-weekly budget, or the amount of money you have to spend every two weeks on things that are not bills or necessities.
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Repeat the process for the second category of bills that will be paid off by your second paycheck. Add these to your bi-weekly fixed expense cost and subtract the number from the amount of your second paycheck. This is your second bi-weekly budget.
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Add the two bi-weekly budgets together. This is the amount of money you have to spend in the month. Subtract from this total a suitable amount that you would like to save this month. If you want to go further, you can divide your total budget by the number of days in the month to reach a daily spending limit, or you can divide it by four to reach a weekly spending limit. Staying within this limit will ensure that your bills are paid and the amount of money you want to set aside for a rainy day will be available.
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