Frugal Living, Sustainable Finance, and Minimalism
How To Create A Biweekly Budget In 5 Easy Steps
If you find yourself paid on a biweekly basis, it could make sense to create a biweekly budget. A biweekly budget is ideal for individuals who receives a commission every other week. You may structure your budget around your paychecks so that you don’t miss anything along with your money, and you will discover out how here!
There are various monthly budgets to pick from, nevertheless it may get confusing in the event you receives a commission a couple of times within the month. Or perhaps you’re simply seeking to budget by each paycheck to have higher control of your funds.
Personally, I’ve found using this budget game-changing. I actually have more control over my funds than ever before by budgeting this manner. The method just isn’t complex so long as you propose things out and put aside a while to arrange it.
In the event you are curious, I’ve got you covered with this guide on making a biweekly budget. You’ll also find links to some excellent biweekly budget templates to assist you to start!
What’s a biweekly budget?
A biweekly budget is a budget that considers an individual getting paid every 14 days. So that you will often get a primary paycheck after which a second paycheck in the identical month (with some exceptions depending on the month e.g. some months can have three pay checks).
Another pay schedules are getting paid monthly, weekly, and semi-monthly.
The difference between bi-weekly and semi-monthly pay schedules
The biweekly and semi-monthly pay schedules are slightly different as the entire variety of paychecks per 12 months varies. The important thing difference is that you simply get 26 biweekly paychecks versus 24 semi-month paychecks.
That said, making a bi-weekly plan gives you control over your funds because you may allocate specific expenses to specific paycheck every month.
How does a biweekly budget work?
With a biweekly budget, you should have ten months where you collect two checks and two months where you collect three checks.
Though your paychecks could also be different in some months, a lot of your fixed expenses will stay the identical. Whenever you arrange a biweekly budget, you’ll have to your expenses and income and lay it out for every month.
Once I first began bi-weekly budgeting, I actually have to be sure I used to be properly distributing my income to specific expenses and goals each pay period. It was a bit tricky at first to determine do that but after a couple of weeks, I got here up with an approach that works for me.
I essentially assigned bills that had due dates in the primary two weeks of the month to 1 paycheck, and bills with due dates within the last two weeks of the month to the opposite paycheck. When it got here to my savings goals, I made a decision on specific dates every month that I would really like to “pay myself” and I split those payments in accordance with once I would receives a commission.
Pros and cons
There are a couple of things to think about when organising a biweekly budget. Some people find it makes life easier to budget on a weekly or monthly basis.
Nonetheless, you may budget based on how you’re getting paid. Listed below are some pros and cons of the biweekly budget.
Pros of a biweekly budget
- Takes under consideration the timing of your paycheck and the pay period.
- Using a bi-weekly expense planner permits you to plan and save up for the unique event.
- The months with extra paychecks allow more room to repay debt or save.
- It is way easier to maintain track of bill payments and times with the budget in place.
Cons of a biweekly budget
- The initial input and setup take time.
- You could have to maneuver around bill payment times to make it work.
- There may be a likelihood of not using the third paycheck appropriately.
Find out how to create a biweekly budget
Now that we’ve got the fundamentals down let’s have a look at the steps in making a biweekly budget. You should ensure you may easily cover your whole essentials.
Which means your rent (or mortgage), utilities, groceries, etc. Listed below are the steps to follow:
Step 1: Arrange a calendar
To start out creating your biweekly budget, you’ll need to establish a budget calendar along with your bill due dates, pay dates, savings plans, and other necessary dates.
Having a calendar gives you a visible view of the whole lot that can occur in the course of the month, this manner you may plan each bi-weekly check you get accordingly. Which means which you can manage your first and second paychecks without worrying between them.
You may do that on a spreadsheet to have a visible view of the whole lot that can occur in the course of the month.
Step 2: Organize your expenses in accordance with your bi-weekly pay
Once you have got your calendar arrange, ask yourself if it’s essential adjust the due dates on certain bills so that they are more evenly spaced. Base this on if you get your bi-weekly pay so that you don’t get behind on bills.
Have a look at when your mortgage, utility bills, and bank cards are due. Take into consideration all of the monthly expenses you pay out of your account.
The goal is to give you the option to cover the expenses that fall in each 14-day window along with your bi-weekly paycheck. Split your expenses up into different categories to assist you to get this right.
Utility firms and other sources of your recurring bills could be quite accommodating on the subject of moving bill payment dates. Don’t be shy to call and ask on your due dates to be moved.
If you wish to make sure you haven’t missed anything, it may well be helpful to review your previous few months of bank statements.
Step 3: Don’t forget your variable expenses
Once you have got all of your recurring expenses in place, return through the month and examine every other potential variable or one-time expenses that would arise, reminiscent of entertainment costs.
For instance, are there birthdays this month? Do you have got to make an additional payment toward a bigger debt? Are you planning a vacation or do you have got a back to high school shopping list?
Determine where to best fit them in your bi-weekly budget template. You must plan to review your variable and one-time expenses ahead of time every month.
In the event you want some extra help here, there are many tools available. Some people find that using an expense tracker or debt tracker works for them, for instance.
Step 4: Create a buffer
I personally think that that is crucial step for a biweekly budget. When the entire consistent and variable expenses are in place, return through the budget and add a buffer.
The buffer must be for emergency money and large upcoming costs that might fall under sinking funds. Having this extra cash is a big help if/when an unexpected or big expense should come up. In the event you don’t use the buffer, keep it saved.
Step 5: Start tracking your budget
Now that your budget is in place, the very last thing to do is start tracking. You could keep track of all spending and savings in order that your personal budget is accurate. Keeping a spending journal may help!
There will probably be things that come up that usually are not a part of your plan. These could be extra income or extra expenses, so be sure you track all of them.
So, set a bi-weekly reminder to examine in in your budget and make your bill payments and savings account transfers every two weeks. It is advisable to use a budget binder or download a PDF budget template to assist you to.
Biweekly budgeting suggestions
As you may see, the means of organising a biweekly budget just isn’t all that difficult. It takes an hour or so originally of the month to plan out any expenses and income for that month. If you have got mostly recurring expenses, it may well take even less time.
Having this head start and being aware of the month ahead can assist you to ensure you’re financially stable. Listed below are some great suggestions for biweekly budgeting.
- Be sure that you write the whole lot down.
- Use an app in your phone to trace spending if needed.
- In case your bill due datea usually are not understanding, call firms and ask to vary the due dates.
- Save up for one month of expenses so that you’ll all the time know you have got the month covered should something come up.
What to do when you have got a 3rd paycheck
Ready for some excellent news? Getting your third paycheck in a month will feel like a bonus in the event you follow your biweekly budget appropriately. There are such a lot of great ways to make use of that paycheck, but listed here are a couple of of the very best options.
- Pay down your debt.
- Put some money away towards a giant bill coming next month.
- Plan ahead and grow your emergency fund.
- Save for a vacation or a big home expense which may be coming up.
- Use it to place aside a whole month of expenses as a backup.
Best biweekly budget template options
Although you may all the time create your individual biweekly budget templates, sometimes it is way easier to only print one. There are various different styles on the market, so you will discover one which matches your preferences.
- Biweekly budget planner from The Savvy Mama
- 101 Planners free budget template
- Templates free biweekly budget templates
- Vertex biweekly budget template
You may try each bi-weekly budget template. Or create a biweekly budget planner using a binder and make space on your bills, bank statements, and other financial documents.
Expert tip: Save a “fun” fund too
We’ve gone over cover your basic expenses but that said you generate profits so which you can enjoy your life. Whenever you’re creating your budget, make sure to put aside some money for the fun things in your life too.
Alternatively, it is advisable to use your third paycheck for this once in a while. For instance, I actually have found that this extra “bonus” is helpful when covering trips away, parties, and special occasions.
How much should I save bi-weekly?
In the event you can, it’s an incredible idea to set a goal of saving 10% to twenty% from each paycheck when you find yourself budgeting on a bi-weekly basis.
In fact, there will probably be times when saving that quantity is out of reach. If that’s the case, keep it as a goal for the longer term and as a substitute you may aim to avoid wasting a minimum of 5% of your income each paycheck.
Is a bi-weekly budget different from a semi-monthly budget?
Yes, a bi-weekly budget and a semi-monthly budget are different. With a bi-weekly budget, you’re planning your funds based on getting paid every 2 weeks (14 days). In a 12 month period would receives a commission 26 times.
Whereas with a semi-monthly budget, your plans will probably be based on getting paid twice a month. And in a twelve month period, you’ll receives a commission 24 times.
With a bi-weekly budget you’ll get an additional paycheck twice a 12 months. So it’s necessary to take a look at the calendar and determine which months you’ll receives a commission 3 times so you may properly plan for this money! I wish to use this pay to speed up my savings goals or plan for large events like family trips.
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In the event you found this text helpful for managing your budget, try these other ideas!
Try the biweekly budget to administer your funds!
Now that you have got the whole lot it’s essential develop a biweekly budget, put aside time in your calendar to start. We all know the means of putting this all into place is usually a bit daunting, nevertheless it is indeed the correct path to becoming fiscally responsible and successful.
It’s hard to see exactly where your paycheck goes until you place it down on paper. Putting together a budget is eye-opening and can change how you consider day-to-day spending.
In the event you are paid biweekly, then a biweekly budget planner could be the very best method on your funds. The more specific these plans could be, the higher your likelihood for fulfillment.
The bottom line is to administer your money properly so that you don’t need to live paycheck to paycheck. Learn more about ditching debt, saving money, and constructing wealth with our blog and completely free financial courses!
