Monthly Budget and Biweekly Paychecks

by Miriam Caldwell | More from this Blogger

18 Sep 2007 07:58 PM

It can be difficult to make a monthly budget when you are paid on a weekly or biweekly basis. You may find that you have difficulty paying all your bills that are due at the beginning of the month or that you do not have money for food the week that rent is due. Here are a few ways to deal with this dilemma.

1) First you should divide all your bills by four and then set aside that amount each week. The envelope system or envelope system software works really well for this. If you are on a cash only system for all expenses except your bills, you should be able to leave the money in your checking account.

2) You may also divide your bills between your paychecks. For example if your rent is at the beginning of the month, you may be your utilities and car payment halfway through. This helps to even out when you need to pay your expenses. Additionally it can make buying groceries a bit easier.

3) The best solution is to save up enough money to cover one month's budget. Then you deposit it into your checking account at the beginning of the month and deposit your paychecks into a savings account. This is great if you do contract work, sales or freelance work. This way if you do not meet your usual goals for the month, you have a month to prepare to cut back and come up with the extra money.

No matter what you decide to do. It is important to track all the money that you spend. It is also important to balance your account regularly. When you are aware of what you have you are more likely to make wise financial decisions. This can help you to reach your goals more quickly.

Learn more about Miriam Caldwell

Miriam is a SAHM mom of three children. She has a daughter who is seven, and two sons, four and two. She loves being a parent and spending time with her children.

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