For instance, if you are on a biweekly pay schedule, I have great news for you. It is crucial to do this exercise before every single month begins because each month has unique expenses. Step #3 Notice Your Monthly Spending Variations You may also need to cut out expenses like cable service. Sometimes the easiest way to fix this is calling your creditor and asking them to move your bill due date to a different day. ![]() If that is the case, you may run out of money and feel forced to use credit cards. This information is valuable because, for instance, it will help you realize if you have too many payments coming out during the first half of the month. Seeing the income and expense dates marked on your calendar will give you a clear snapshot of your monthly finances. That includes utilities, mortgage, insurance, debts, tuition, etc. I am talking about all the things you spend money on monthly. Use your orange marker or red pen to mark all your recurring expenses. If you get paid twice a month, you will receive 24 paychecks throughout the year. And that is very important to know if it is Friday and you are on your last dollars! It will not always fall into the 15th and the 30th since some months have 31 days.įor some people, if payday falls on a weekend, your company may deposit the money or issue you a check the following Monday. When you get paid twice a month, or semimonthly, you need to be aware of precisely the days you get a check because it varies. In this case, you should not expect to receive extra paychecks throughout the year unless you receive bonuses. If you get paid once a month, you will need to be very diligent to split up that money and make it last. You need to be aware and budget intentionally, otherwise your extra money will magically disappear. I feel like when you budget per week or bi-weekly you lose perspective of expenses that might be happening in the near future.īecause you get paid weekly, some months you will have an extra paycheck. Monthly budgeting will give you a broad perspective of your expenses. Instead, I teach how to do a unique monthly budget and to organize your expenses. ![]() I do not recommend that you budget by paycheck. If you get paid weekly you need to have a clear idea of your monthly expenses so that you put money aside to complete your more costly payments. You might not think much about your pay frequency, but it is a significant factor. Some people get paid weekly, once a month, twice a month, or others bi-weekly. You can look at the pay dates of the previous month as a point of reference or ask your employer for the exact pay dates. The first thing we need to do is figure out when are we getting paid. ![]() Monthly Expenses Snapshot Step #1 Input Your Pay Dates Step-by-step: How to do a monthly expenses snapshot
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