If you get paid every two weeks, it might be logical for you to organize your finances on a biweekly basis using a budget. Those paid twice a week would benefit significantly from using a budget broken down into biweekly categories. There are a lot of different monthly budgets available, but if you get paid more than once during the month, using one of those budgets could be confusing. Or maybe you want to create a budget that takes into account each paycheck individually. Here is the good news: we already have you covered with this guide on creating a budget that covers the biweekly period. As long as you have everything planned out and assigned some time to get it ready, the procedure is not complicated at all. In addition, below, you will find links to some awesome bi-weekly budget templates that will assist you in getting started.
What do you mean by a biweekly budget?
A person who receives pay twice every week should create a budget that considers their biweekly income. Pay schedules could occur once a month, once every week, every two weeks, or even twice a week. Due to the varying total number of paychecks received throughout the year, the pay schedules that are biweekly and twice per month are slightly distinct from one another. In the biweekly system of paychecks, one could receive either 104 paychecks or 26 paychecks approximately, depending upon the definition that has been agreed to mutually. The other definition implies twice every month.How does a biweekly budget actually operate?
If you are paid every 14 days, you will have ten months to collect two checks and two months to manage three checks. This is where the biweekly budget comes in since you must make sure that you are aware of how to effectively disperse this money and put it to work for you. Even though some of the paychecks you receive may be different from one month to the next, many of your regular expenses will continue to be the same. When you create a budget on a biweekly basis, you will consider all of your expenditures and income, and then you will lay it out for each month.The good and the bad of having a biweekly budget
When creating a budget for every two weeks, there are a few essential things to keep in mind. Some people believe that creating a budget on a weekly or monthly basis makes life easier to navigate overall. You can, however, create a budget based on the method by which you will be paid. The following gives an analysis of the benefits and drawbacks of the biweekly budget.The benefits of budgeting every two weeks
- It takes into consideration the schedule of when you will be paid.
- Enables you to prepare for and save money for the one-of-a-kind events.
- The months in which there is an extra paycheck, create space for savings and allow for the reduction of debt.
- When a budget is in place, it is a lot simpler to monitor when bills are paid and keep track of their due dates.
The drawbacks of budgeting every two weeks
- The initial setup can take a little bit of time.
- It is possible that you will need to rearrange when you pay your bills to make it all work.
- There is a chance you might not use the third paycheck effectively.
Steps to help you create a biweekly budget
Now that we understand the fundamentals of this type of budgeting let us look at the processes involved in developing a budget for every two weeks.Step One: Printing out a calendar
You may get a head start on making your budget organizer by printing off a calendar to use as a tracker for your finances. This makes it simpler for you to plan out your financial situation. The calendar provides you with a highly visual representation of everything that is going to take place throughout the month.Step Two: Organize your expenditure
When you have your calendar divided up, start putting in your expenditure. Examine the dates on which your credit card payments, mortgage, and other bills are due. Consider all of the money that is taken from your account every month for various expenses. Suppose you want to be absolutely sure that you have not overlooked anything. In that case, it might also be good to review the bank statements for the most recent several months of your account. When monitoring your cash flow, a cash calendar can be of great use to you.Step Three: Take into account all of the additional expenses
After you have settled all of the recurring costs, you should review the previous month in order to identify any possible additional costs that may have arisen. For instance, does anyone have a birthday during this month? Should you make an extra payment toward the higher amount that you owe? Are you going on a trip, or do you need to do some shopping for the upcoming school year?Step Four: Insert a buffer
After calculating all of the variable and consistent costs, you should add a buffer to the account. A buffer, also known as an emergency savings account or a sinking fund, is a little amount of extra cash that gives you some breathing room in your budget in the event that an unexpected or significant expense arises. You should save the buffer if you don't use it.Step Five: Get started with the tracking
After putting together the budget, the next step is to begin keeping track of everything. To ensure that your budget is correct, you need to be sure that you are correctly tracking all of your expenditures as well as your savings. There will be events that take place that are not going to fit into the plans you have made. Make sure you note all of these, as they might imply either additional money or additional expenses.Additional advice for biweekly budgeting
As can be seen, the procedure for developing a budget that accounts for every two weeks is not particularly complex. You should set aside some time at the start of the month to plan out all of your upcoming expenditures and revenue. Getting this head start and being informed of the coming month might assist you in ensuring that you are not in a precarious financial situation. Here are some helpful hints for budgeting on a bimonthly basis.- Make sure that you keep track of everything in writing.
- If you really need to keep track of your expenditures, download an app on your phone.
- Call the companies who send you bills and ask them to move the due dates if the numbers don't add up correctly.
- Set aside enough money to cover your costs for one month so that you will always have to be reassured, knowing that you are prepared for whatever may come your way.
What to steer clear of when you're paid every two weeks
When you are paid biweekly, it is logical to space out your payments across the entire month to avoid any surprises. On the other hand, you are going to have a fair amount of work if all your bills are due on the 15th or 30th of the month. Because of this, you will need to put aside one of your paychecks for a considerable amount of time. This paycheck will help supplement the funds from the other check to cover the expenses. This is not an ideal circumstance, but it is one that you can avoid. When it comes to rescheduling the dates on which you are required to make payments on recurring bills, businesses that provide utilities and other services can often be very flexible. You may be required to make a small down payment during the first month, but after that, you are free to pick the date that is most convenient for you. It would be best if you made an effort to stagger some payments so that some are due at the start of the month and some are due at the end of the month.What to do when you receive your third paycheck
If you have adequately planned out your finances on a biweekly basis, receiving your third salary of the month might feel like an added benefit. Here are some of the most effective methods to put that salary to work for you out of the many wonderful possibilities available.- Pay off a part of your debt.
- Put some money aside to pay a large bill that is due in the following month.
- Make a game plan and build up your reserves for unexpected events.
- Put money aside for possible future expenses such as a trip or significant renovations to your house.
- Please make use of it to save yourself a whole month's worth of costs in case of emergency.
Options for the best biweekly budget templates
Even while you may always make your own templates for a biweekly budget, there are instances when it is much simpler to print one off on your own. Because there is such a wide variety of styles available, you should have no trouble finding one that complements both your family and your personal aesthetic.- Biweekly budget planner from Microsoft Word
- 101 Planners free budget template
- Free biweekly budget templates
Give the biweekly budget a shot
Make sure you schedule some time in your calendar to develop a budget for every two weeks now that you have everything you need to do so. We are aware that the process of putting all of this in place might be somewhat intimidating. Still, we also know that doing so is the right road to becoming financially responsible and successful. Until you write down precisely where your paycheck is going, it might be challenging to understand where the money is going. Creating a budget is an eye-opening experience that will transform the way you think about the money you spend on a day-to-day basis. If you are paid every two weeks, a budget that is broken down into two equal halves would be the most effective way to manage your money. The more precise these strategies can be, the more chance you have of doing what you set out to do. The goal is to practice responsible financial management so that you do not have to live from paycheck to paycheck.