I’m trying to figure out how to handle rent in my budget, but I think I might be overthinking it. I get paid every two weeks, and rent is due on the 1st of each month but doesn’t actually get withdrawn until a few days later. I need to have the next month’s rent ready by the end of the current month. Does this mean I should budget for rent twice in one month?
For example, if I roll over $8,000 from last month and October’s rent is $2,000, and I need to set aside $2,000 for November’s rent, should my actual rent budget be $4,000 for October?
October 4th: From your first paycheck of the month, set aside $1,000 for November’s rent and use the rest for other expenses.
October 18th: From your second paycheck, set aside another $1,000 for November’s rent, again using the rest for other expenses.
By the end of October, you’ll have $2,000 ready for November’s rent. When November 1st comes, you’ll pay rent, get paid again, and start saving towards December rent.
Ridley said: @Winslow
Thanks for this example! That really helps a lot! Do you create separate savings accounts for things like rent rollover?
I don’t create separate accounts for each category, but I do have a high-yield savings account where I park anything I’m saving for. I keep a mental tally or use a budgeting app to track how much of that is for home maintenance, car repairs, or other long-term savings goals. If you don’t have one, a high-yield savings account is great because you can earn around 4-5% interest on your savings.
What I do is set aside half of my rent from each of the two paychecks before rent is due. Both paychecks usually fall in the month before rent is due, so it works out.
When it comes to rent, always expect the unexpected! It’s like a surprise round of Monopoly every month—you just gotta roll with it and keep those funds ready.
I get paid bi-weekly too. I set aside a portion of my mortgage payment from each paycheck and keep it in my savings, then pay from that account when it’s due.
Since you get paid every two weeks, you actually have 26 paydays in a year, which means two months will have three paychecks. I’d treat those two extra-paycheck months as a bonus and stick to budgeting as if you only get two paychecks per month.