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As a person who’s worked years in accounting, finance, and as a bookkeeper, I’ve spent a lot of time talking to people who struggle over and over with budgeting. I will admit—for me, it’s fun. For others, not only does it become stressful, but aggravating, and I get that! The way many people approach budgeting is very rigid, strict, and rule-heavy. If I’m being honest, especially if your income is limited, you have to break some budgeting rules to get to a better space. Also, you have to plan for the long game, be patient with yourself, give yourself grace, and be happy that you can have a carefree life when it comes to your money—way easier than you think! 🙂

Highlights of Budgeting for Your Bi-Weekly Paycheck

The perfect thing about having a paycheck that you know will come consistently every two weeks is that you can plan. Even if your paycheck may not feel like enough, trust me, it can be!

Understanding Different Pay Schedules

Bi-Weekly vs. Twice Per Month

Let’s quickly go over the difference between bi-weekly paychecks and getting paid twice per month. Using my past jobs as an example, bi-weekly paychecks follow a strict schedule (every two weeks), most likely on a Friday. Getting paid twice per month, however, follows specific dates—like the 15th and the last day of the month.

As someone who believes in budgeting in a way where it doesn’t matter when you get paid, I hated the twice-a-month schedule. (I’ll admit, it’s probably because I like things to be more definitive.) The problem was, if the 15th or the last day of the month fell on a weekend or holiday, payday would shift. That meant I had to keep an active calendar just to track my paydays.

I like a clean “Friday is payday.”

Also, the nice thing about getting paid bi-weekly is that a few months within the year, you technically get an “extra” paycheck! This can help extend your budget and even put you ahead! 🙂

Budgeting vs. Forecasting vs. Tracking

Before we get into the actual budgeting, I want you to understand the three different phases of managing your money. A lot of people confuse forecasting and tracking with budgeting, but they’re not the same thing.

• Forecasting is when you guess what you’ll make and spend. Most people start here—telling themselves, “This is what I should make, and this is what I usually spend.” (And always underestimating food costs! 😅) It’s useful, but it’s too general and doesn’t account for real life.
• Tracking is when you look back at what you’ve spent. Apps like Mint (RIP) used to do this. You create a budget, leave it, and later go back to add transactions and adjust based on what actually happened. Tracking is important because no one is perfect—we all have surprise expenses.
• Budgeting is the present. It’s what you do with the money you have on hand right now.

The Core Rule of Budgeting

First things first: only budget the money you have ON HAND. You should be budgeting for everything you need to take care of until your next paycheck. I know this might be a shift in mindset, so let’s use an example:

Example Bi-Weekly Budget

It’s the last Friday of the month. You have:

• Leftover funds: $500
• Paycheck #2: $1500
• Total available: $2000

Before you get paid again (in two weeks), your expenses include:

• $900 Rent
• $90 Insurance
• $15 Netflix
• $90 Phone Bill
• $350 Groceries (for two weeks)
• $120 Gas (for two weeks)

Total expenses: $1565

Your budget should be something like this: When you receive money, pause and ask yourself, “What does my money need to do until the next time I get paid?”

How to Create a Bi-Weekly Budget

1️⃣ List Your Income and Expenses

• Income – All sources of income.
• Fixed Expenses – Bills with set due dates and amounts (e.g., rent, insurance, subscriptions).
• Variable Expenses – Fluctuating costs (e.g., groceries, gas).

💡 Tip: Keep a simple spreadsheet with all your expenses for quick access. If you sign up for a new subscription (like Peacock because you needed to rewatch The Office ☺️), jot it down immediately so you don’t forget.

2️⃣ Add Expenses & Paydays to Your Calendar

• Create a second calendar called “Bills” or “Expenses.”
• Set reminders for bills (even if they’re on autopay).
• Cross-check with your main calendar for upcoming events (e.g., birthdays, trips) so you can plan ahead.

💡 Tip: If you’re serious about getting your budget on track, starting with a fresh bank account can help you separate your spending, track your expenses, and build better habits. SoFi Bank is a modern, no-fee bank with high-yield savings and great perks. Plus, new customers can earn $25 for signing up and up to $300 when they set up direct deposit! (Sign Up Here!)

3️⃣ Assess Your Income vs. Expenses

• Do you have enough to cover everything?
• Do you have extra that can go toward savings or debt?

4️⃣ Account for the Funds You Have Now

• Do you already have some savings?
• Are there leftover funds from your last paycheck?

5️⃣ Subtract Fixed Expenses from Your Current Balance

• Cover rent, bills, subscriptions, etc.

6️⃣ Estimate Your Variable Expenses

• Look at past spending or make an educated guess.
• Adjust as needed each month.

7️⃣ Create a Plan for Any Leftover Money

• If you don’t have savings, start small—put it in an easily accessible savings account.
• If you’re just getting started, focus on covering your needs first. Savings will come next.

8️⃣ Budget Every Paycheck!

• Make it a routine—whether bi-weekly or weekly.
• Keep receipts or track spending digitally so you can adjust if needed.

Final Thoughts

Don’t overcomplicate this. Budgeting is a skill that develops over time. You don’t have to be a “master budgeter” overnight. But now? You’re officially a budgeter. And consistency is your new best friend. 🙌

💰 Starting fresh with your finances?
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