How to Create a Budget with Biweekly Paychecks

Creating a budget is one of the best ways to track your spending and make every dollar count. You can do this whether you’re paid weekly, biweekly, or monthly. 

Let’s look at how to create a budget based on biweekly paychecks! 

What is a biweekly budget? 

A biweekly budget is a money management plan designed for people who receive a paycheck every two weeks. A detailed biweekly budget should provide a snapshot of your spending and saving based on a two-week timeframe instead of the more common monthly budget. 

When set up correctly, a biweekly budget can be more effective because it accurately reflects your income and expenses each pay period. Think about it: if you’re paid every two weeks, the number of paychecks you receive each month may vary. 

It's important to note that a budget based on biweekly paychecks differs from one based on bimonthly paychecks. With biweekly paychecks, you receive 26 paychecks each year, whereas bimonthly pay results in only 24. It's crucial to consider these two extra paychecks to ensure you don't overspend or underspend during those months. 

Biweekly pay periods in 2024 

The biweekly pay periods at your company might vary, but in general, here’s what your schedule might look like: 

And so on. Using this pay period calendar, you would receive two paychecks every month, except for March and August, when you would receive three. 

8 steps to create a biweekly budget 

Now that you know what a biweekly pay schedule looks like, let’s walk through how to budget biweekly paychecks. 

1. Choose a budgeting platform 

There are plenty of great budgeting platforms and apps, including Rocket Money, NerdWallet, and others. 

For a simpler approach, you can use a pen and paper or Google Sheets. The main thing is that you choose the budgeting method that works for you and helps you keep track of your finances. 

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2. Tally your total income 

Once you choose a budgeting platform, you need to add up your income. This is easy if you’re on a salary or work the same number of hours each week. Simply take the take-home amount listed on each paycheck. 

Things get more difficult if you have an hourly job, a second income, a freelance side gig, or a partner who also works. In any of these situations, add up all your income (after taxes) from the last year and divide it by 26. That will give you a good idea of your average income for a two-week period. 

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3. List predictable expenses 

Note all regular monthly expenses, starting with fixed costs like rent, utilities, and insurance. Here are common fixed expenses you’ll want to include: 

• Rent or mortgage 
• Utilities 
• Insurance (health, life, auto) 
• Subscriptions (TV, streaming services, gym membership) 
• Loan payments (auto loan, student loans) 

4. Budget for any extra spending 

After listing your fixed expenses, note your variable expenses that may change from month to month. These might include: 

• Groceries 
• Dining out 
• Vacation fund 
• Date nights 
• Shopping 
• Pet care 
• Entertainment 
• Childcare 

You should also plan for variable expenses that pop up unexpectedly, such as home repairs, car repairs, medical bills, and other unexpected emergencies. The best way to do that is by creating an emergency fund to cover unexpected bills. 

5. Don’t forget about savings!

If you want to improve your financial future, you’ll need to start saving. Savings should include any money left over after all your fixed and variable expenses are covered. 

Types of savings: 

• Emergency fund 
• Retirement savings (IRA, 401k) 
• Goal-specific savings (vacation, home purchase, etc.) 

It’s important to be intentional about your savings and set aside that money first so any “extra” money doesn’t become additional spending. 

6. Set up your budget calendar 

After calculating your expenses, savings, and income, input them into a budget calendar. Remember to assign specific dates to your fixed expenses and biweekly paychecks. 

Creating a budget calendar will help you visualize when money is coming in and going out, making it easier to plan your variable expenses accordingly. It's particularly important to do this if you have more fixed expenses in one half of the month than the other, as it will prevent overspending and ensure you have enough money for all your bills. 

7. Create 2 budgets, 1 for each pay period 

Another way to ensure that you spend and save the right amount of money during each half of the month is to create two budgets. 

Having two different budgets may give you a better idea of when you can deposit extra money into savings or spend more disposable income. That way, you don’t overspend during any part of the month and risk defaulting on your bills and debts. 

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8. Track your budget 

Don’t forget to monitor your budget. As you get into the habit of sticking to a budget, you might need to make adjustments. 

A good way to track your spending is to keep your receipts and input each expense into your budgeting app or calendar. Doing this takes time, but it’s the only way to ensure you’re keeping an accurate record. Alternatively, you can review online bank statements at regular intervals. 

Simple biweekly budget template 

Creating a budget from scratch and manually tracking your spending can be challenging. Consider using a biweekly budget template to simplify this process and ensure accurate financial records. 

Many free templates are available online on sites like Pinterest and Canva, or you can purchase more detailed ones from Ramsey Solutions and QuickBooks. 

Your biweekly budget will cover your income, fixed and variable expenses, and any savings you have.   

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Biweekly budgeting tips 

In addition to being organized and disciplined, here are a few practical tips and tricks to keeping a biweekly budget. 

Download a biweekly budgeting app 

Tracking expenses manually is not only time-consuming, but it can also result in errors. Simplify the process with a budgeting app, particularly one that can also help identify areas to cut back on. 

A few solid apps include: 

• Pocketguard 
• Rocket Money 
• YNAB (You Need a Budget) 
• Every Dollar 
• Good Budget 

Be smart in those 3-paycheck months 

Realizing you get an extra paycheck in August doesn’t mean you should take that money and splurge. Instead, use the extra paycheck to pay down debt, build an emergency fund, invest, or save for a bigger goal. Allocate every dollar from these paychecks to avoid frivolous spending. 

Cater your budget to your needs 

When my wife and I started budgeting, we realized the importance of adjusting our spending to fit our budget rather than changing our budget to accommodate our spending. 

While fixed expenses like insurance, rent, and car payments can't be changed, you can reduce or eliminate variable expenses. For instance, you could reduce your $500 entertainment, dining out, and online shopping budget to $250 and allocate an extra $50 to groceries. 

Additional budgeting tips and tricks 

• Track every expense: This one is worth repeating. Whether you use an app or not, record all your expenses diligently to see where your money is going. 
• Review regularly: At the end of every two weeks, review your budget to make necessary adjustments. 
• Set financial goals: Allocate a portion of your income toward savings and investments to build a secure financial future. 
• Adjust categories as needed: Personalize the categories to fit your specific spending habits and lifestyle. 

Biweekly budget FAQs 

Is biweekly pay the same as bimonthly pay? 

Biweekly and bimonthly pay are similar but not the same. Biweekly means you’re paid every other week, resulting in 26 paychecks each year. Bimonthly pay means you’re paid twice per month (such as the 1st and 15th of every month), resulting in 24 paychecks annually. 

Is a biweekly budget better than a monthly budget? 

When choosing between a biweekly and monthly budget, neither option is better or worse. The key is choosing the right budget for you and sticking to it. 

Does the 50/30/20 budget rule work if I’m paid biweekly? 

The 50/30/20 rule works for any type of budget because it’s based on percentages. It simply means that you put 50% of your income towards needs, 30% towards wants, and 20% into savings or an emergency fund. 

Can I save money using a biweekly budget? 

The goal of any budget is to help you save money, and a biweekly budget is no different.