How to Budget Biweekly Income (Free Budget Template!)

Do you feel like you’re on a financial roller coaster every payday? One moment, you’re feeling secure with cash in hand, and the next, you’re stretching every dollar to make it to the next check. I know the feeling all too well from my days working a 9-to-5.

If you’re paid biweekly, the ride can feel even bumpier. With 26 pay periods each year instead of the typical 24, budgeting becomes a bit more challenging. Those extra paychecks can make it tricky to keep things steady and balanced.

But don’t worry! With a little planning and a few practical tips, you can create a budget that works with your biweekly pay schedule. Stick around—I’m breaking it down step by step so you can finally take control of your finances, one paycheck at a time.

But, First, Who Am I to Teach You About Budgeting?

I’ve been exactly where you are—juggling bills, paychecks, and the challenges of managing a biweekly income. When I first started budgeting, I struggled to stretch each paycheck and felt unprepared for expenses that didn’t align with my pay cycle. Through the years, I learned some strategies that transformed my budget, giving me control over my finances, consistent savings, and less financial stress. Now, I’m here to share what I’ve learned to help you make the most of your income, no matter how tough it seems at first.

To enhance my expertise and help others even more effectively, I’ve even pursued financial coaching courses to expand my knowledge.

I am currently enrolled in and completing the National Financial Educators Council’s financial coaching certification program and working toward certification.

What is Biweekly Pay and How Does it Work? 

Getting paid biweekly is when you get your paycheck every two weeks instead of every week. So, in a year, you’ll get a total of 26 paychecks. Since there are 12 months in a year, there will be two months where you get three paychecks instead of the usual two. The other 10 months will have two paychecks each. 

How to Calculate Biweekly Pay

Figuring out your biweekly pay is simple – just divide your yearly salary by 26. For example, if you earn $50,000 a year, your biweekly salary would be $1,923.08. Don’t forget to account for any deductions, such as taxes and retirement contributions, that might affect your actual take-home pay.

If you have a job where you get paid by hour, you can determine your biweekly pay by multiplying the number of hours you work in two weeks by your hourly wage. 

Let’s say you make $10 per hour and  work 20 hours per week for two weeks in a row. Doing the math, $10 x 20 x 2 = $400. This means that if you work for two weeks at 20 hours each week, you would make $400.

Is Biweekly Pay the Same as Getting Paid Twice a Month? 

It’s easy to mix them up, but they’re actually different. When you get paid twice a month, you typically receive your paycheck on set dates like the 15^th and 30^th of each month, adding up to 24 paychecks in a year when you’re on a salary.

On the other hand, biweekly pay means you get paid every other week, like every other Friday. This equals to 26 paychecks in a year since there are 52 weeks in total.

How to Budget Biweekly Income

Creating a biweekly budget might seem a little confusing at first, but it’s actually not that hard to wrap your head around. 

Wondering where to start? No worries, I’m here to help you figure it out. In this post, I’ll walk you through the steps on how to budget biweekly income. If you’re ready, here’s the rundown. 

1. Make a list of all your bills.

I used to budget by writing everything down with pen and paper, but it was all too easy to make mistakes and lose track of my spending.

To simplify the process, I created my own budget printable, which you can download for free below. If you’re looking for an easy way to keep track of your spending, feel free to use this printable too!

Now, let’s get started! Just like how you would carefully track your expenses on a monthly basis, the same rules apply when it comes to creating a biweekly budget. List out all your bills, from rent or mortgage to utilities, credit card payments, and everything in between. Be sure to include the amount due and their due dates so you can stay on top of things.

If you want to be extra thorough, take a peek at your last two months’ worth of bank statements. Comb through every transaction and highlight the bills that come out every month like clockwork. Don’t forget to add these to your list of bills alongside the ones you’ve already noted down. This will give you a better idea of what you need to budget for each pay period. 

Be sure to track every single expense—one small oversight can throw your budget off course. I’m talking about unexpected late fees, overdraft charges, and unnecessary stress. It might feel like extra work, but if you want your budget to truly work for you, it’s essential to go through every detail and ensure everything is accounted for.

2. Add your bills to your bill payment calendar.

Now, it’s time to get organized. Grab a calendar or use an app on your phone; whatever works best for you. Simply add your bills to the calendar based on their due dates. This way, you can see at a glance what needs to be paid when. 

This step might seem like a breeze, but it’s essential for staying on track. Let’s say you have a credit card bill due on the 15^th of every month. With your bill payment calendar in hand, you can easily see when it’s time to make a payment. You can put a big checkmark next to the bill once it’s been paid. Or perhaps you have bills set up for automatic withdrawal from your account. Simply mark off the bills from your calendar once they’ve been taken care of.

One tip to remember is to make sure you keep your bill payment calendar in a place where you can easily spot it. Don’t hide it away in a corner, or you might just forget to check it out regularly. Trust me, that reminder can save you a lot of late fees down the line. 

3. Set aside a portion of your income for savings.

After going through a tough financial situation due to not having an emergency fund, I realized just how crucial it is to save for a rainy day. Knowing there’s a little nest egg set aside for emergencies or unexpected expenses brings such peace of mind. It wasn’t easy to get started, but I stayed committed to my goal, and I’m so glad I did.

On my blog, I often emphasize the importance of saving money. It’s one of the best financial habits, and I always encourage others to make it a priority too. Now, you might be wondering how often and how much to save from each biweekly paycheck.

It’s simple: make it a habit to set aside a small portion every payday. If you follow the 50/30/20 rule, you can aim to save 20% of your paycheck. But if you can only manage half of that for now, that’s completely fine. Remember, every little bit counts—start small and gradually work up to larger goals! 

If you’re not sure how much money to save from your paycheck, there’s an easy step you can take. Personal finance expert Dave Ramsey suggests starting with what he calls a “baby step.” His first baby step is to set aside $1000 for emergencies.

Ramsey and his team also suggest putting away 15% of your income for retirement. Well, I definitely think you should hop on board with this idea too. A survey found that about one in five Americans, or 22%, regret not saving for retirement earlier in life.

Alright, here’s another tip to save money — If you can automate your savings by setting up a direct deposit or transfer, even better. That way, you won’t miss the money you’re stashing away. 

4. Create a list of your monthly variable expenses.

So, you’ve got your bills all laid out on your bill payment calendar. Now it’s time to take the next step – creating a list of your monthly variable expenses.

Variable expenses are expenses that can change from month to month. One key thing about variable expenses is that they are flexible. This means that you have control over how much you spend on these items. Here are a few examples of monthly variable expenses:

• Groceries
• Personal care items
• Clothing and shoes
• Transportation
• Giving
• Recreation
• Pet care

What you need to do is figure out how much you usually spend on these expenses every month. Once you have that figured out, divide this amount equally between each paycheck.

Suppose your monthly budget for groceries is $500. When you receive your first paycheck, you can set aside $250 for groceries. Then, when you receive your second paycheck, you can allocate another $250 for groceries. 

Since variable expenses are the ones that can be adjusted, this is the category where you have room to make cuts.

Here are some tips on how you can trim down on variable expenses.

• Plan your meals for the week and grocery shop with a list. 
• Buy generic brands instead of name brands.
• Cut back on dining out.
• Shop sales and use coupons.
• Buy in bulk.
• Cancel unnecessary memberships and subscriptions.
• Use free or discounted resources for entertainment, such as local events.

5. Write your first biweekly budget.

Now, you’re ready to tackle your very first biweekly budget. This is where you will allocate your income towards your expenses and goals for the next two weeks. If you want to make sure every dollar is accounted for, you can try out the zero-based budgeting method. 

Since you’ve already written down all your expenses, let’s talk about the next steps to set up your biweekly budget using the zero-based budgeting method. 

• Allocate your income to cover your expenses. This means assigning each dollar to a specific category like rent, groceries, utilities, and savings. Make sure every single dollar has a job to do.
• Subtract your expenses from your income. If you have any money left over after subtracting your expenses, decide how you want to use this extra cash. Maybe you could put it towards any debts you may have.

When it comes to paying off debt, money expert Dave Ramsey suggests using the snowball method. This approach involves paying off your smallest debts first, then moving on to larger ones.

• If you end up with a negative number after subtracting your expenses, look for areas where you can cut back. Remember that when you’re using a zero-based budget, your expenses should always equal zero.

6. Write your second biweekly budget.

As you sit down to work on your second biweekly budget, you may be wondering what exactly you need to include in it to stay on track of your finances.

First things first, make sure to allocate funds for all of your remaining bills for the month. You don’t want to end up with a late fee or, even worse, have your credit score take a hit.

Once you’ve taken care of those bills, it’s time to start thinking about any other expenses you might have coming up. You may need to set aside additional money for your variable expenses. 

When it comes to budgeting for variable expenses, always prioritize the essentials. You can have fun along the way, but focus on the must-haves first. This ensures that you have enough money to cover your basic needs until your next paycheck. 

If there’s some money left over, you can put it towards paying off your debts, just like you did in your first biweekly budget. If you are debt-free or want to focus on building your savings, it can be a great way to jumpstart your savings goals.

It’s also a smart idea if you put up a sinking fund. A sinking fund is essentially a way to set aside money for a specific purpose or goal. In my blog, I have discussed in detail how sinking funds can help you save money and plan for future expenses. You can read all about it here. 

7. Track your spending. 

Once you have your biweekly budget planned out, make sure to check on it often throughout the month. 

One thing to keep an eye on is your spending. Those impulse purchases can really sneak up on you, like when you go to the store for toothpaste and end up with a cart full of things you don’t need. By keeping track of your spending, you can avoid unnecessary expenses and missing out on your financial goals. 

Another reason to track your spending is to see if your budget is realistic. If you constantly find yourself going over budget in some areas, it might be a sign that your budget needs to be adjusted. Maybe you need to allocate more money to certain categories, or maybe you need to find ways to cut back in other areas. 

It could also be that you are missing some important categories in your budget. When you create a budget, it is essential to include all of your expenses, big or small. If you leave out certain categories, you are not accurately reflecting your spending habits. You might end up overspending in those areas without realizing it and throwing your entire budget off track.

Biweekly Budgeting Tips for Families 

Budgeting can be a helpful way for families to manage their finances and make sure they have enough money for all their needs. Here are four simple biweekly budgeting tips to help you stay on track and make the most of your family’s budget.

1. Prioritize expenses.

Start by paying for essentials such as rent or mortgage, groceries, and utilities. Then, allocate money for other expenses, such as entertainment and dining out. 

2. Set financial goals.

Discuss your family’s financial goals and prioritize them based on importance. Whether it’s paying off debt or saving for a family vacation, having clear goals will help you stay motivated.

3. Plan for large expenses. 

Anticipate big expenses such as back-to-school shopping or holiday gifts and budget for them in advance to avoid financial strain.

4. Separate needs from wants.

By distinguishing between needs and wants, you can make sure that you are spending your money on the most important things first, before splurging on things that are not essential.

5. Cut costs.

Look for ways to cut costs and save money whenever possible. This could include meal planning to reduce food waste, shopping for groceries in bulk, and using coupons.

6. Involve your kids in the budgeting process.

Teaching children about the value of money and the importance of saving can help them develop good financial habits for life. For example, if your kid wants to buy a new toy that is not in the budget, you can suggest they save their allowance for a few weeks until they have enough money to buy it.

7. Communicate openly.

Keep the lines of communication open with your family members about money matters. Discuss any concerns or changes to the budget together to ensure everyone is on the same page.

Let’s face it, writing a budget is not really a fun thing to do. Who wouldn’t be rather trying out a new recipe in the kitchen or getting lost in a good book, right?  But if you want to reach your money goals, then budgeting has to be at the top of your to-do list.

By following the steps I’ve outlined above and putting in some hard work, you can start your path to financial freedom.

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