How to Budget Bi Weekly Paychecks on a Monthly Budget

Bi-weekly budget

How to Make a Monthly Budget with a Bi Weekly Paycheck

Do you get paid biweekly? Creating a budget biweekly doesn’t have to be much different or really any more difficult than any other type of budget. Let’s check out what you need to be successful with your new budget!

What Does Bi-Weekly and Semi Monthly Mean?

First, let’s start with some clarification about how you are getting paid.

Semi monthly means getting paid twice a month– usually on the 1st and the 15th. The definition of bi weekly pay is getting paid every other week. 

After many years of getting paid semi-monthly, on the 1st and 15th of every month, I recently started a new job that pays me bi weekly. I didn’t realize it at the time, but bi weekly pay forced me to learn a whole new way to budget. Some months I’m getting paid twice, others three times. Not always the same weeks.

All that change had me scratching my head like, whaaaaaaat?

 

How Does Bi Weekly Pay Work?

Since bi weekly pay happens every other month, that means you are getting paid twenty-six times a year.

Occasionally, depending on how the calendar falls, it can be twenty-seven, but for planning purposes– twenty-six.

That means twice a year you will be getting an extra pay check. We’ll talk more about what to do with these paychecks later in the article. 

bi weekly budget

 

How Do I Pay My Bills When I Get Paid Bi Weekly?

 

Set up your monthly budget for all categories.

Getting paid once a month, twice a month, every week—it doesn’t matter. You need to know where your money is going.

Groceries. Utilities. Mortgage/Rent. Gas. Insurance. Car Payment. Cell Phone. Internet. Haircuts. Clothing. Gym. Debt Payments.

Once you know what money you need you will be in great shape to get yourself and your money organized to rock your month!

Bi Weekly Budget Template

I’ve recently set up a resource library with all of my budget templates and printables!

Drop your email below if you want to receive your very own bi weekly budget template like the one pictured.

A super simple spreadsheet to track your bi weekly pay and give yourself a year-long overview. Super helpful when making sure you are staying on track with your plan and goals! If Google is more your thing– I’ve also set up bi weekly budget template Google Sheets!

The Google Sheet template includes a year long over view so you can track your progress, a month by month budget and a bill tracker to keep yourself organized!

How to Organize Paying Bills.

Google Calendar is a fantastic free tool to help keep your finances organized and on track. 

I use it daily to help me stay on top of the rest of my daily life and budgeting is no exception.

Part of it is that the visualisation really helps me understand what’s happening in each month, but also the bonus of getting the email reminders so I don’t forget due dates and how I’ve allocated funds in my budget.

The first step to organize paying bills is to schedule out the rest of your paychecks for the rest of the year.

 

Add all regularly occurring Expenses to the Calendar.

Next, reference your budget and add your bills to the calendar.

I’m a big fan of knowing my weekly budget for things like gas and groceries (discretionary spending), so if that is something that would be helpful to you, you can add those to the beginning of every week to help you account for your monthly spending.

Again, you want to be able to see what is due, when its due so you can then decide when and how you are going to pay it.

For large dollar items, like rent or your mortgage, I like to split payments. If my rent is $1200, I split it into payments of $600.

Note: A bonus to scheduling this, is you get to plan ahead if there are one time expenses you need to budget. Example: birthday’s, Yearly car inspection, holiday spending, etc. No need to last-minute scramble for money to cover those expenses.

It’s far easier to put an extra $7/month away for a few months than to all the sudden have to come up with $100 because of poor planning.

 

 

 

I’ve Organized My Pay and My Expenses– Now What?

Save a Month’s Worth of Expenses.

A goal of mine is to save up enough money for a month’s worth of expenses. I can’t imagine too many things more stressful than living paycheck to paycheck. Getting a month ahead helps to alleviate the stress for a few reasons.

First, since you won’t be getting paid at the same time of the month every month, but typically bills are due at the same time every month. If you are a month ahead, you will always have the money ready to pay bills as they are due regardless if you are getting paid during the first or second week of the month.

You have the flexibility to pay when it best works for you and the due date versus being forced into a certain window because of your ever-changing pay date.

Second, peace of mind. If anything, unexpected pops up you have time to adjust for that change.

A word of caution– this is not a free for all pot of money. The purpose of this fund is to maximize your flexibility in paying bills. This is also not an emergency fund

Check yourself, before you wreck yourself!

When you are planning to get a month ahead. You don’t necessarily need to save a months worth of salary– you just need to save enough to cover your necessary expenses. 

The point is to have the money to cover next months bills

I have a baseline budget that consists of just what I need to get by. It doesn’t include entertainment or eating. It doesn’t include any money that I don’t absolutely need.

You want to make sure you have the money for rent, utilities, cell phone, etc. Anything above necessities is a luxury and those are things you could forgo if the money wasn’t there. 

 

Getting A Month Ahead of BillsLearn how to get a month ahead on bills with this easy to follow savings plan.  

If you are on a super tight budget there are lots of ways to fund this to help you get ahead.

  • Temporarily cut back on other discretionary spending.
  • Pick up a side hustle: dog walking, lyft, babysitting, mother’s helper, etc.
  • Sell stuff. Check out Ebay, Craigslist, FB Marketplace, or hold your own garage sale.
  • Online surveys. Some of my favorite are Swagbucks, Survey Junkie, and Inbox Dollars.

 

What to Do with Your Two Extra Bi Weekly Paychecks During the Year?

As I mentioned above twice a year you will get an extra payment.

In 2019, depending on how your pay schedule falls, this will likely happen in March and August– though you’ll know for sure when you’ve scheduled out all of your pay in your Calendar. (*hint, hint* *nudge, nudge*)

Here is a list of a few ways you could use those paychecks to get ahead in your financial goals:

  • Save up to get a month ahead for expenses. 
  • Pay down debt
  • Put money away for retirement. 
  • Add extra to your sinking funds: new car, vacation, home/auto maintenance, etc. 
  • Pay an insurance policy (auto, home, life)
  • Grow your emergency fund
  • Pay/plan ahead for irregular expenses.

 

Pitfalls with Budgeting Bi Weekly Paychecks

There are a few areas you need to be cognisant of when budgeting your bi-weekly pay.

The Two Extra Paychecks. As I mentioned above, your occasional third paycheck isn’t intended to be a free for all, so much as a potential windfall to help you get ahead. Don’t squander the opportunity.

Failing to plan for the month. You need to be diligent about laying out your whole month, so you don’t run out between payday. This is why I strongly recommend using a calendar to really visualize where and when money needs to be spent.

I created a free printable Bill Tracker to help keep all your bills organized! You can download a PDF version, but it’s also included in my Google Sheets Spreadsheet which you can get through the subscribe box above!

 

Bill tracker

 

 

How do you budget bi weekly? Any tips or hacks to share? I’d love to hear from you, please comment down below. 

Related Budgeting Articles

Budgeting 101 | Budgeting for Beginners

The Complete Guide to the Envelope System | Stop Overspending

30 Days to Saving More Money 

 

bi weekly budget

Bi Weekly Budget

 

 

 

 

 

 

How to Budget BiWeekly Income with Monthly Bills

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4 thoughts on “How to Budget Bi Weekly Paychecks on a Monthly Budget”

    • Thank you so much! I couldn’t agree more. Having a budget is so important when you are taking control of your money. Cheers!

    • Hi, Allison. What a great question!

      My family has been getting paid semi-monthly and bi-weekly for the past two years and I’ve found that the best thing you can do is to get organized with your income and expenses.

      I started out by making a list of all of my expenses and their due dates so I could see how much money was due each week. There is a printable bill pay tracker in my resource library, but you could just as easily make a list on a regular ole sheet of paper.

      Then, I put all that information on a calendar (I used Google Calendar but you could just print one out or DIY). Next, I put our paychecks and the amounts on the calendar and started divvying up what is getting paid during each pay period and then making notes if a certain paycheck was going to be short so I could set money aside from a previous paycheck. I also include weekly needs for gas, groceries, etc so that everything is accounted for.

      The absolute best way is to get a month ahead so that you are paying this months bills with last months paycheck. It makes paying bills and planning out your budget tons easier and really helps to alleviate the stress and feeling of living paycheck to paycheck. But depending on your financial situation, it could take some time to get to the point where you are a month ahead.

      My last tip would be to make sure that you each know, based on the budget you made above, what you are getting for spending each week so you don’t accidentally overspend your budget.

      I use a hybrid version of the cash envelope system–paying some bills electronically and some cash.

      I’m the one who does all the grocery shopping, etc. So I organize my money by week instead of just a monthly envelope. If one week I have mine and my husbands paycheck hit– that usually means I’m making 2 weeks of grocery shopping envelopes, I’m setting aside money for gas for the following week, etc. because I know the following week, we won’t be getting paid.

      The benefit of the list of bills is to help you plan ahead so you aren’t ever going to be short.

      Let me know if you have any other questions. I hope this helped!

      Cheers!

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