When you are paid on a biweekly basis, it may make sense for you to create a biweekly budget. A biweekly budget is perfect for those that get paid every other week.
There are many monthly budgets out there, but it may get confusing if you get paid a few times in the month. Or perhaps you are just simply looking to budget by each paycheck.
Luckily we have you covered with this guide on how to create a biweekly budget. The process is not complex as long as you plan things out and set aside some time to prepare it. We also have links to some excellent biweekly budget templates below to help you start!
What is a biweekly budget?
A biweekly budget is a budget that takes into account a person collecting a paycheck every 14 days. Some pay schedules are monthly, weekly, biweekly, and even twice per month.
The biweekly and twice per month pay schedules are slightly different as the total number of paychecks per year varies. You’d get 26 biweekly paychecks and 24 twice-per-month paychecks.How does a biweekly budget work?
With a biweekly budget, you will have ten months where you collect two checks and two months where you collect three checks. Therefore, ensuring that you know how to properly spread this money out and make it work for you is essential.
Even though you have months where the paychecks may be different, many of your monthly expenses will stay the same. When you set up a biweekly budget, you will consider all of your expenses and income and lay it out for each month.Pros and cons
A few things to consider when setting up a biweekly budget. Some people find it makes life easier to budget on a weekly or monthly basis. However, you can budget based on how you are getting paid. Here are some pros and cons of the biweekly budget.Pros of a biweekly budget
Takes into account the timing of your paycheck
Allows you to plan and save up for the unique events
The months with extra paychecks allow room for saving and paying down debt
It is much easier to keep track of bill payments and times with the budget in placeCons of a biweekly budget
Initial setup takes some time
You may have to move around bill payment times to make it work
Chance of not using the third paycheck appropriately
How to create a biweekly budget
Now that we have the basics down, let’s look at the steps involved in creating a biweekly budget.