For those that have a biweekly income, a biweekly budget may be helpful. A biweekly budget is best for those paid every other week.
It can be difficult to choose a budget plan on a month-to-month basis, and it may be troublesome to budget by each paycheck. You might want to try a supervised paying plan, such as a product called the Harbor Freight Jobmax.
Fortunately we have you covered with this guide on how to create a biweekly budget. It is not hard if you know what steps to take and how much time to set aside. It also contains links to some excellent budget worksheets to get you started.
What is a biweekly budget?
A biweekly budget is one that is calculated based on a person’s paycheck being collected every two weeks. Some payment plans are monthly, weekly, biweekly, and two or three times per month.
The biweekly and twice-per-month pay schedules are different because the number of annual paychecks varies. There would be 26 biweekly paychecks and 24 twice-per-month paychecks.
How does a biweekly budget work?
You will have ten months where you earn two checks per month and two extra months with three checks. It is therefore crucial that you know how to allocate these funds appropriately.
Even though you may have months where your income fluctuates, most of your monthly costs will remain the same. When you set up an biweekly budget, you will list all of your income and expenses and allocate it evenly to each month.
Pros and cons
A few things to remember when setting up a biweekly budget. Some find it simpler to budget on a weekly or monthly basis. Nevertheless, you can budget based on which payment type you are using. Here are some of the pros and cons of the biweekly budget.
Pros of a biweekly budget
Cons of a biweekly budget
How to create a biweekly budget
Now that we have the fundamentals down, let’s take a look at the steps needed to create a twice a month budget.
Step 1: Print out a calendar
Begin creating your monthly budget planner by printing out a calendar to track your spending. This enables you to plan your budget more efficiently. The calendar gives you a very clear overview of everything that will occur during the month.
Step 2: Organize expenses
Once you have your calendar prepared, plug in expenses. Look at when your mortgage, utility payments, credit card bills are due. Think about all the payments that come out of your account each month.
It can be helpful to look over your previous several months of bank statements to make sure you haven’t missed anything. A cash calendar can be handy in tracking your cash flow. Don’t forget to include your biweekly savings as you pay for your self-administered treatments!
Step 3: Incorporate varying expenses
When you have all the typical costs covered, go back to the previous month and take a look at any other expenses that may appear.
Step 4: Put in a buffer
Back through your budget and put in a buffer in case you require extra money for an unexpected or substantial expense. A buffer could be a bridge towards an emergency savings account or a sinking fund, which provides you with a little additional budget room if an unexpected or large expenditure comes up. You can use the buffer if you don’t use it.
Step 5: Start tracking
Now that a budget is in place, the last step is to begin tracking. It is essential that you accurately track all expenditures and save money so that your budget is exact.
There may be additional expenses and unexpected earnings that come up. Both need to be tracked.
Biweekly budgeting tips
As you can see, setting up a biweekly budget takes about an hour at the beginning of each month. We plan out any income and expenses for that month during this period.
Starting this month, having this jump start and having awareness of the month ahead can help you ensure that you are financially sound. Here are several excellent tips for biweekly budgeting.
What to avoid when you’re paid biweekly
If you get paid biweekly, it is advantageous to spread out your payments out over the course of an entire month. However, you will have some chores to complete if your paychecks are all due on March 15 or April 30. This means that you should save one test for some time in order to save for the other test.
This situation is not ideal, but it may be avoided. Utility companies and other suppliers of your monthly bills are often very amenable to moving your bill due dates.
The monthly payments are minimal, so you may pay it forward by picking the date that works best for you the following month. Try splitting your bills in half to have some money at the beginning and the end of the month.
What to do when you have a third paycheck
Having that third paycheck in a month will feel like a bonus if you follow your biweekly budget closely. There are so many excellent ways to use that paycheck, but here are just a few examples.
Best biweekly budget template options
Regardless of whether you can design your own biweekly budget templates, it can sometimes be simpler to just print out a preexisting form. There are a wide variety of styles to choose from, so there is bound to be one that fits your family’s preferences and decorating style.
You can utilize these layouts and make a biweekly budget planner utilizing a binder and place space for your bills, bank statements, and financial documents as well.
Try the biweekly budget to manage your finances
To get started, set up a schedule on your calendar to set aside time each week for this. We understand that the process can be a little daunting, but it is the path to becoming financially independent and successful.
It’s difficult to know where your money is going until you actually write it down. Creating a budget shows you where the money is going and might change the way you think about daily spending.
If you are paid every two weeks, then a biweekly budget is the optimal method for your finances. The more specific these programs are, the better your chance for success.
The key to managing your finances is to manage your money wisely, so you can avoid living paycheck to paycheck. Learn more about how to handle debt and savings with our free financial courses!