How to Budget Monthly Bills on Biweekly Pay

Biweekly pay schedules are popular for most salaried and hourly jobs.

Budgeting your biweekly pay prevents missing your monthly bill payments. If you do not budget your money, you might run out of funds to pay bills at the end of the month. To avoid delinquencies and possible credit problems, stick to your monthly budget and avoid sporadic, unplanned purchases. If possible, avoid using all of your disposable income each month so you can create a buffer of cash for emergencies.

Instructions

1. Write down all of the bills and debts you owe each month on a sheet of paper. Order the debts from the beginning to the end of the month. For instance, if your electric bill is due on the first of the month, it goes at the top of the list. Bills and debts include utilities, rent, loan payments and any other liabilities.

2. Separate the debts into two groups. The first group falls under the first paycheck you receive for the month and the second group falls under the second. For example, if you are paid on the first and 15th day of the month, group all bills due between those days in one section. Repeat this for bills that fall between the 16th and 30th day of the month.

3. Calculate the cost for each column of bills. If the bill is not a set amount each month, such as a utility bill, assign an average cost to the bill based on previous bills and use that number in your calculation. For instance, your first group of bills might equal $1,200 (due to rent) and your second group might equal $500. If you have trouble consistently paying your first group of bills, ask the company sending the bill if you can move the payment to later in the month.

4. Write down any other expenses you incur during the month. These expenses may include groceries, clothing and travel. Add the other expenses to your bills to find your total expenses for the month. Subtract this amount from your total income for the month to find your total monthly disposable income. To find your disposable income between each pay period, repeat this step for each group of bills, dividing your other expenses between the groups. For instance, with your first group of bills that total $1,200, add an additional $200 for food (the total food expense for the month split in half). If you receive $1,500 on the first day of the month, you would have $100 of disposable income until the 15th day of the month.

5. Create a calendar that contains each bill you must pay for the month. On your paydays, write the estimated amount of disposable income you have left over. If you see the amount of disposable income you have left after each pay period, you'll likely stop yourself from overspending.

References

• The Digerati Life: How To Make A Budget In 10 Easy Steps
• The Simple Dollar: Personal Finance Management on a Biweekly Pay Schedule
• Federal Trade Commission: Knee Deep in Debt