How to Budget by Biweekly Paycheck

If you’re getting paid every two weeks, it may be difficult to budget by month. Creating a bi-weekly budget can help improve your money management by properly timing your expenses and assigning expenses to your two paychecks per month.

Organizing your budget should only take an hour or so, so don’t procrastinate! You’ll likely feel much better once you take control of your budget and know that your money is going to the right places at the right time.

Here’s a budget solution for those who get paid biweekly, or multiple times per month.

How do I budget if I get paid every two weeks?

First, add up your total monthly pay and write down that ‘total income’ number. Next, add up your total monthly expenses (all of your bills) and your cost of living, like groceries and transportation, and write down that ‘total expenses’ number. You can automate this by using a budgeting app downloaded from the app store, that will categorize your expenses for you!  

It's important to make sure that you’re living within your means and are able to pay your expenses each month. If you see that your monthly expenses are greater than your monthly income, figure out what categories you need to reduce your spending to prevent going into debt each month.

Divide your bills by paycheck

When all your bills are due at the same time, running out of money quickly can feel unavoidable. After all, you aren’t paid up front for the entire month of work, so how can you be expected to pay all your bills with just half a month’s worth of pay? Thankfully, there’s a hack for this!

List your two paydays and create a group for each – Paycheck #1 and Paycheck #2. Next, list out the bills you must pay each month, the estimated amount and their due dates. Then, separate the bills into two groups, balancing the amounts so that you can afford to pay one group with one paycheck.

List your pay days and bill due dates

1. Create two groups: List Paycheck #1: pay date and Paycheck #2: pay date
2. List your bills: Provider, estimated amount, bill due date
3. Separate the bills into two groups so that you can afford to pay the amount with your paycheck

Example:

1. Paycheck #1: Rent, phone, savings contribution
2. Paycheck #2: Car payment, electric bill, credit card bill

Ask your service providers to adjust your bill due dates

Next, call up your service providers and ask them to move the bill due date so that it fits into your desired paycheck period. Often, they will be flexible with this, so don’t feel as though it’s a big ask!

As you make the calls and move the due dates, be sure to update them on your sheet and check them off as you go.

Schedule your bills to be paid automatically

Avoid late fees by scheduling your bills to be paid automatically. This can be set up within your service provider’s website, selecting the date and amount that you’d like to schedule for payment. For United Members, this can also be done through Bill Pay in digital banking.

Scheduling your bill payments will give you peace of mind knowing that you won’t miss a payment or be charged a late fee, taking one more thing off of your to-do list.

Decide when you’ll make your credit card payment

It’s best to pay off your credit card in full each month, but if that’s not possible right now, at least make sure that you’re making the minimum payment. Decide which paycheck you’ll use to make your credit card payment and go ahead and schedule it – either for the full payment, or the minimum. This will take another item off your to-do list once it’s automated.

Not able to pay off your credit card in full? Use our free credit card calculator to design a payment plan that works for you. 

Take note of how much money you have left over each paycheck

Now that you’ve organized your bills into paycheck periods, take note of how much money you’ll have left over each month. This money can be used for entertainment expenses, savings, and other costs that come up. Just knowing this number puts you in a better position for money management, as you’re aware of how much you have to spend.

Let’s recap:

How to plan a biweekly budget

1. Add up your total income and expenses
2. List your two paycheck dates and income
3. Break up the bills into the two paycheck periods
4. As needed, call your service providers and request to adjust your bill due dates
5. Take note of how much money you have left over per pay period and live within your means.

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