Most budgets are set up to be monthly.
Many of our bills are monthly so it’s a convenient way of managing your spending.
But many of us aren’t paid monthly, we’re paid every two weeks (biweekly). When you’re paid biweekly, a monthly budget can sometimes be a bit “off.” We have months where you’re paid twice and a couple where you’re paid three times.
And some of us are paid weekly, which means some months will have four pay periods and others will have five.
These non-monthly pay periods can throw off your budget, which is why some people prefer paycheck budgeting (which sounds better than weekly or biweekly budgeting, despite the alliteration!).
Table of Contents
Paycheck budgeting is when you align your spending with your paychecks. This is best done with a planner of some kind (we have linked up our printables below).
For each month, you match your expenses with your income.
You begin at the top by listing your paychecks, the dates you will get them deposited, the amount, and any other notes you may have about that payment.
Next, list all of your month’s expenses, the amount, and their due dates. This is anything that is billed regularly on a month basis.
For example, you may have:
- Rent/Mortgage – 1st of the month
- Cell phone – 5th of the month
- Cable television – 10th of the month
- Netflix – 15th of the month
- Gym – 18th of the month
- Credit card #1 – 20th of the month
- Student loan – 25th of the month
Then, you want to match those expenses with specific paychecks so you have complete coverage of your expenses.
How to Budget by Paycheck
If you’re paid twice a month (1st and 15th), you know that those bills from the 16th to 31st are paid by the paycheck you received on the 15th. The bills from 1st to 15th will be paid by the paycheck received on the 1st. (you can also get an account that gives you your paycheck two days early)
Once you match up your fixed expenses, it’s now time to see what’s left over to apply towards your variable expenses, like groceries, gas, and savings.
Once you budget for those items, you have either a surplus or a deficit, which is carried over to the next pay period.
If you have a deficit, this is when you can start adjusting your variable expenses (or negotiating your fixed expenses) so that you have a surplus. If you have a surplus, great, you can still adjust and negotiate to increase that surplus.
Download Our Paycheck Budgeting Printable
Our paycheck budgeting printable is very simple because the concept of paycheck budgeting is very simple. Matching up expenses with your paychecks is a time honored technique because it works. The math supports it.
Our paycheck budgeting printable has five weeks so it covers any month of the year. If you are paid twice a month, treat each “week” as a pay period.
In 2024, if you are paid weekly, the five paycheck months are March, May, August, and November.
If you are paid biweekly, then the three paycheck months will depend on the day of your first paycheck:
- If paid on January 5th, you have three paychecks in March and August
- If paid on January 12th, you have three paychecks in May and November
In 2025, if you are paid weekly, the five paycheck months are January, May, August, and October.
If you are paid biweekly, then the three paycheck months will depend on the day of your first paycheck:
- If paid on January 3rd, you have three paychecks in January and August
- If paid on January 10th, you have three paychecks in May and October
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About Jim Wang
Jim Wang is a forty-something father of four who is a frequent contributor to Forbes and Vanguard’s Blog. He has also been fortunate to have appeared in the New York Times, Baltimore Sun, Entrepreneur, and Marketplace Money.
Jim has a B.S. in Computer Science and Economics from Carnegie Mellon University, an M.S. in Information Technology – Software Engineering from Carnegie Mellon University, as well as a Masters in Business Administration from Johns Hopkins University. His approach to personal finance is that of an engineer, breaking down complex subjects into bite-sized easily understood concepts that you can use in your daily life.
One of his favorite tools (here’s my treasure chest of tools, everything I use) is Empower Personal Dashboard, which enables him to manage his finances in just 15-minutes each month. They also offer financial planning, such as a Retirement Planning Tool that can tell you if you’re on track to retire when you want. It’s free.
Opinions expressed here are the author’s alone, not those of any bank or financial institution. This content has not been reviewed, approved or otherwise endorsed by any of these entities.
