Plea For Help!!

So I have been on a monthly paycheck for – well – ever. Starting in August I’ll be on a twice monthly salary. The thing is, I don’t really know how to set up my budget for getting paid twice a month because I have all my bills and everything set up to go through on the 1st of the month.

Thus my plea for help is to you bloggers who are used to biweekly salaries. Could you post links to your budgeting strategies or some hints and tips for me?

I would appreciate it immensely!!

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17 Responses to Plea For Help!!

  1. I’ve always gotten paid twice a month, and I think you will find it easier to budget discretionary money when you get paid more often. (Since you get paid less at one time, you never are like “score, I have $500 in my checking account” and spend it all at the grocery store during the first week.) As far as your bills and things go, even if the due dates don’t work this way officially, you can tell yourself that your rent, phone bill, and car insurance come out of one paycheck and your CC, utilities, and car payment come out of the other (or whatever the case may be). You just pay half your bills when you get one check, and half your bills when you get the other. I don’t think it’s any big deal. 🙂

  2. TeacHer says:

    I get paid every other week, so for 10 months out of the year I get paid twice a month (and two months out of the year I get the glorious “third” paycheck!). My rent gets paid on the first, so I use the second check I get every month to cover that for the upcoming month (so second paycheck in June paid for my July rent), then my other check takes care of the rest of my bills, which all have end of the month due dates.

    I’ve started a new budgeting system where I budget second paycheck to second paycheck. In other words, that’s the “month” my budget is based on, rather than budgeting based on the month of ‘July’ or ‘August.’ I’m finding this to be much easier because of the timing of my monthly credit card payment, since I use my credit card for all my discretionary spending and then pay it off in full.

    I hope this made sense – maybe I’ll write a whole post about my “system” sometime soon!

  3. eemusings says:

    Ugh. Well, I get paid fortnightly. Rent is also paid every two weeks. I put away a set amount that I have calculated each paycheck to cover monthly and other less frequent bills. I also like purse’s idea of paying half your bills with one and the other half with the second.

    Can you “get ahead” in the budget by two weeks so that you’re not always playing catchup? Maybe borrow from your EF?

  4. Beckey & Jeff says:

    You can always call your creditors and ask to change your due dates. That may help you space out your payments to twice a month. I’ve had to do that when I switched from monthly to bi-weekly.

  5. Beckey & Jeff says:

    You can always call your creditors and see about changing your due dates. I had to do that when I switched from monthly to bi-weekly.

  6. paranoidasteroid says:

    My best recommendation is to set up your budget based on 2 paychecks. That should give you an extra 2 paychecks per year for emergencies/savings.

    As far as bills go, I’d suggest keeping a bigger buffer in your account. That way you know there will be money there if you don’t get paid, say, until the 10th.

  7. Red says:

    I get paid bi-monthly as well (11th and 26th), and it’s pretty easy to budget. Just consider one paycheck for a handful of expenses and the other for different expenses. For instance, my last paycheck of the month pays all of my bills for the next month. My first paycheck is normally reserved for all non-fixed amounts (gas, groceries, entertainment, etc.). Then, at the end of the month after I’ve paid all bills, I use whatever is left over for my debt payment. Good luck!

  8. Anna says:

    I get paid bi-weekly too (LOVE the 2 “extra” pays per year!). I have a bi-weekly budget. From each pay cheque, I cover the same items…groceries, savings, gas, mad money that are the same from each pay. The balance of the first pay of the month covers the rest of the bills (cell phone, home phone, cable/internet, car payment, car insurance etc), and the balance of the second pay covers the rent for the following month (i end up with a little extra money that I sock away into my chequing account each pay..I don’t do “zero budgeting” to account for all the money). It works for me, and it means that if I spend all my grocery or gas money in the first week for whatever reason, I only have to wait one more week to top it up again, as opposed to waiting for three weeks, same for spending money. Good luck..it’s hard to change when you’ve been used to doing things a specific way for a while!

  9. run131 says:

    I use a bimonthly budget. If you email me at ifiwerearichgirl11@gmail.com I can send you the excel spredsheet template. This sheet shows has a column for the first and second paycheck then there is a column where the monthly total is calculated.

    When I first moved I tried to balance my paychecks by splitting fixed payments in half. For example my rent was $625 so I sent a check to the leasing office on the 15th and last day of the month for $312.50. This helped aleviate the financial burden. Other expenses that fell into this category were car insurance, car payments, cell phone, food, gas for car and rent.

    Over time I even tried it with some variable payments and it worked out pretty well. On the second paycheck, I only had to increase the payment by a couple of dollars. For example my electric bill would be around $60, so I would budget $30 on each paycheck. When the bill came the actuall amount may be $63 so I would pay $33 from the second paycheck

    Good luck

  10. Don’t freak out. It should make absolutely no difference. You don’t need to change anything unless you want to. Fortnightly bills for people who are the spendy spendy kind and can’t keep their money in their accounts. You, already living on a monthly budget shouldn’t have a problem.

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  12. Kim says:

    Le sigh, I too am paid bi-weekly. All it means is that you need a bigger cushion in your checking account to automate your bills. Also if you mean paid bi-weekly (instead of twice a month) it means there are two “extra” paychecks which helps one save!

  13. Serendipity says:

    I get paid biweekly so what I have done is designate different bills to different paychecks. All of my bills that are due the 15th come out of the first paycheck and my car insurance and cell phone bill usually come out of my second paycheck along with rent. I haven’t so far really had a problem with anything but I think I’m going to really work on having a buffer there for safe measure.

  14. Moonwaves says:

    I think I’d have to look at it similar to the way I look at my annual expenses. I’ve worked out how much I need to cover all of my annual expenses like insurance and each month I put that amount into a separate savings account. When those bills come in then I just transfer the money into my current account and pay them from there. An extra savings account (one with quick access to your money) set up into which you pay money to cover all of your expenses as soon as you get paid might be a help. But now I’m going to go and read the rest of your archives and probably discover that you already do something like this!

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