Milvionne Chery Copeland, Writer
@milvionne_copeland
The best way to budget when you get paid biweekly is to organize your expenses into two-week cycles and use each biweekly paycheck to cover a cycle. In other words, you can pay bills due in the first half of the month with your first paycheck of the month and the bills due in the second half with your second paycheck.
You can also allocate funds to expenses you’ll have throughout the month, like groceries and gas, in each cycle. For example, you may have to pay for gas every week instead of once a month like some expenses, so you could have two weeks of fuel expenses built into each biweekly budget.
How to Budget Biweekly Paychecks
1. Figure out your biweekly income.
Use the amount listed on your paycheck after taxes and deductions have been removed. This will be the money you have available to spend for the next two weeks.
If taxes are not automatically taken out of your paycheck, you’ll want to set aside a portion of your paycheck for taxes. WalletHub’s federal tax bracket calculator can help you figure out what percentage of your paycheck you should save.
2. List your expenses in two-week cycles.
List out the expenses you will have for the next two weeks. This should include all the bills that will come due before you get your next paycheck, as well as everyday expenses such as food and transportation costs.
3. Set up a budget calendar.
A budget calendar is a timetable that lays out all your bills, when they are due, and the dates you get paid. It can help you plan out which bills will be paid with which paycheck. You can create a paper budget calendar with a budget planner or make a digital one by using certain websites or budget apps.
4. Factor in variable expenses.
For variable expenses that may fluctuate throughout the month, you should review your bank and credit card statements for the past six months to get an average of how much you spend on these expenses every month. Then, divide that amount by two to determine how much you should allocate to each of these costs every two weeks.
5. Automate your savings.
Set up your checking account to automatically transfer funds to your savings every time you get your paycheck. You may even be able to have your employer deposit part of your paycheck directly into your savings account, if they offer split deposit. When you automate your savings, it will be one less thing you’ll have to remember to do.
6. Review your budget.
Review your budget regularly to make sure you are not spending more than your biweekly paycheck. If you realize you are spending more than you expected, you should identify areas where you can cut back on spending. Budget apps, like the WalletHub app, can make it easy to track and analyze your spending to find more ways to save money.
To learn more, check out WalletHub’s guide on how to make a budget.
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