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How to Create a Simple Budget on a Bi-Weekly Paycheck

Are you like most people and get paid bi-weekly?  Do you juggle with the bills each month by figuring out when to pay what bill?  I used to do that until I figured out how to budget myself.  Most Americans like you and me are in this boat more than they would like to admit.  You’re not alone.  I have a very simple way to budget on a bi-weekly paycheck.

Yeah I know.  Creating a budget doesn’t seem easy or simple but it is.  Yes I know.  It isn’t fun either but you will be much better for it.  Sadly, you must do this and be an adult about it.  Adulting sucks but it will get you ahead.

What Does Bi-Weekly Mean?

Bi-weekly pay means getting paid every two weeks or twice a month.  In most cases, you get paid 26 times a year.  Two of those months you get paid three times in a month.  You will need to use that to your advantage.

In order to budget yourself, you must look at everything you spend money on.  I suggest writing a list of all your bills and the extras you pay monthly.

Creating a Spreadsheet

Budget SpreadsheetStart by creating a spreadsheet using Excel or Google Docs.  When I say bill, I mean water, gas, electricity, insurance, phone, rent/mortgage and other loans.  Your extras are anything like cable, Netflix, and any other monthly memberships that you don’t necessarily need but want.

Now that you have all of your bills together, then you need to look at their due dates.  Compare your due dates to your paydates. This can be difficult because they don’t always coinside with each other, so you have to do a little juggling.

Here’s an example of just how simple my spreadsheet really is below.  Notice how I put the paycheck first, then I have the total left.  This tells me how much money I have left after I subtract the bills from my paycheck amount.  Sadly for me, it’s a depressing number but maybe not for you.

Paycheck #1
Car Note
Electricity
Gas (Utility)
Total Left

Paycheck #2
Cell Phone
Internet
Credit Card
Signature Loan
Car Insurance
Water (Utility)
Total Left

See?  That wasn’t bad now was it?  It’s a very simple way to stay in budget.  If you keep up with it, then you will know how much you will have each month.

What to do With the Third Paycheck?

Money PaycheckNow, let’s talk about that third paycheck you get twice a year.  It’s usually in June or July and December.  What would you do with an extra paycheck?  I know what I would do with it.  I would spread out all of the bills, so I would have more money from each paycheck.

This is how I used my third paycheck:

Paycheck #1
Car Note
Electricity
Total Left

Paycheck #2
Cell Phone
Credit Card
Water (Utility)
Car Insurance
Total Left

Paycheck #3
Gas (Utility)
Internet
Total Left

As you can see above, I spread out all of my bills to all three paychecks.  This is why I love those third paychecks.  I have more money in my pocket for those months.  Sometimes it can stretch even further but life happens, too.

Another way to use your third paycheck is by paying everything like you do every month.  Then use that third paycheck to either splurge or catch up on other expenses.  Either way, it’s a win for you.

How to Create a Simple Budget on a BiWeekly Paycheck

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