I need some help here. I work for an hourly rate and get paid bi-weekly, sometimes even weekly, during certain months. I’m trying to budget my paychecks better, but I just can’t find a system that works for my situation. My paychecks vary a lot because I don’t always get the same amount of hours. Most budgeting systems are designed for fixed incomes, and I’m looking for tips on how to create a budget that fits my unique pay structure. I was thinking a percent-based budget might be the way to go since I can apply it to each paycheck no matter how much it is. But I’m still not sure. Any tips from folks who have dealt with a similar pay setup would be super helpful.
A budget is really just a plan for how you want to spend your money, whether you’re paid hourly or yearly. I’d recommend using Excel or Google Sheets for this. Start by making a list of all your expense categories—stuff like rent, food, transportation, and even big expenses that pop up occasionally like gifts or insurance copays. Then, in another column, write down how much you think you should spend per week on each category. After that, multiply that weekly amount by 4 to get a rough monthly total. If you have expenses like contacts that aren’t monthly, divide the total cost by how many months until you need them again to find a monthly budget. At the bottom of your expense column, add everything up to see your total monthly expenses. Then, compare that with all your paychecks for the month. If you end up in the negative, you know it’s time to cut back on spending.
You can definitely budget either weekly or bi-weekly. A budget is all about assigning every dollar you think you’re going to make. I usually budget based on the lowest amount I think I might earn and set up my budget that way. This way, I assign every dollar so I end up with a zero-based budget. When I get my paycheck and it’s higher than what I budgeted for, I put that extra money toward my financial goals, like paying off debt or saving for something. Just make sure you’ve assigned every type of transaction to your categories, and track your expenses daily. It’s a bit of work, but it helps you feel good about paying your bills and still having some funds for fun and savings.
We actually specialize in helping people with situations like yours. We suggest budgeting every four weeks or based on two paychecks. We have a planner that allows you to see what bills are due in those 28 days and automatically puts those expenses into your budget. It’s just a plan, so you still need to log your transactions and update based on your actual income to keep your budget accurate. Give our system a try, and let us know if you have any questions or feedback. Best of luck with your budgeting journey.
I get paid bi-weekly too. I have six primary house bills each month, and three of them usually come out of my first paycheck. I pay those in full whenever I can. Whatever is left, I use for groceries for the next two weeks—so one week’s worth goes for groceries, and I try to save the other week’s worth. I also set aside money for gas and some of my other expenses, like trash service, which is billed every three months, so I save for that monthly. For car insurance, since it’s every six months, I save a certain amount each month. Start with your essential bills, total your monthly income, and then break down what you need to save per paycheck.
I actually budget by pay period instead of monthly. I use a template from DebtFreeMom.co that I really like. It’s on Excel or Google Sheets, and it helps me see which pay periods I have a deficit or a surplus. I find it super helpful.