Make a Bi-Weekly Budget Instead of a Monthly One
Struggling to stick to your monthly budget (or even get it done in the first place)? Instead, consider creating a two-week budget. Getting paid every two weeks (or twice a month) makes it easier for you to manage your money in this way, because it takes into account that no spending week is the same: some weeks you can be very frugal and responsible. , and others, you may have unexpected expenses or decide to be pampered.
If your budget is designed for two weeks, it can directly match the salary and allow you to mentally “start over” with each of them, and earlier than the monthly budget does. He also recognizes that we need to be more flexible with our money.
How to budget for two weeks
- Write down the typical salary you receive on one check.
- Review your bank statements, find all of your fixed monthly expenses – like rent / mortgage, car payments, loans, cable TV / Internet, groceries and entertainment – and divide each number by two.
- Subtract the total from your paycheck and put it in a savings account. (You can also pay bills every two weeks, such as by credit card, to stay ahead of the deadline.)
- Subtract all “target” money, for example, for your savings account or vacation fund (I personally have a target amount in my planner, so I remember to invest in it) and put it in another savings account.
- All that’s left is what you need to spend over the next two weeks.
By following this pattern, you receive 24 salaries throughout the year. However, if you get paid biweekly, you will actually receive 26 checks a year, and you can set aside “bonus” checks to pay off debt, pay off your mortgage, or other financial goals.
It also allows you to set aside money in advance for larger accounts and purposes, instead of using one paycheck as, say, your “rent” check and trying to stretch another for the entire month.
There are other ways to do this. You need a budget , for example, suggests deducting all of your fixed costs (such as renting and paying for a car) from your first paycheck of the month so you can use your second paycheck more flexibly. … But it all comes down to managing your money in a way that you understand.
This story was originally published in 2018 and updated on November 18, 2020.