How to Create a Bi Weekly Budget

Getting paid every two weeks makes a budget a little bit more challenging. I’ve been getting paid monthly for the past eight years, and I can tell you that at first it seems impossible, but now I think it helps us spend less.

Monthly grocery shopping was a game changer for us in the early days of our debt-free journey. If you get paid bi-weekly, I hope this post helps you create and stick to your bi-weekly budget. I’ve also shared some savings tips to help you when the budget feels a little bit tighter.

Learning how to budget now has a tremendous positive impact years down the road. Don’t give up and stick with it. After eight years, we are 100% debt-free, have no mortgage, and have an investment property. The commitment is the greatest challenge and the greatest reward.

By budgeting bi-weekly, you can account for each paycheck, prioritize bills, and plan your spending across the month. Let’s dive into the steps and best practices for setting up a bi-weekly paycheck budget, plus download a free bi-weekly paycheck budget template to get started right away.

Why Choose a Bi-Weekly Paycheck Budget?

A bi-weekly budget works well for those who get paid every two weeks or twice a month. It allows you to align your income with your expenses more precisely.

Plus, you’ll avoid the stress of guessing how much will be left after each paycheck because you’ve already budgeted for upcoming expenses.

Steps to Create a Bi-Weekly Paycheck Budget

1. Calculate Your Total Income for the Period

• Write down the net income you receive from each paycheck. This will be your starting point for each budget period.

2. List Your Fixed and Variable Expenses

• Start with fixed expenses like rent, mortgage, car payments, and utilities. These are things that MUST get paid.
• Add variable expenses like groceries, entertainment, and gas. Estimating these based on past spending patterns can be helpful.

3. Identify Your Bi-Weekly Expenses

• Some bills are monthly, but a bi-weekly budget divides them across both monthly paychecks. For instance, if your rent is $1,200 per month, budget $600 from each paycheck.

4. Set Aside for Savings and Emergency Funds

• Save a small portion from each paycheck, even if it’s just $20. Over time, these small amounts build up, giving you peace of mind in case of unexpected expenses.

5. Allocate Discretionary Spending

• After you cover essentials and savings, allocate money for discretionary spending like dining out, hobbies, and non-essential shopping. The bi-weekly format can help limit impulse spending.

6. Adjust and Track Spending

• Keep a close eye on your spending during each period. If you overspend in one area, adjust accordingly in the next period to stay on track.

PRINT A FREE BUDGET SHEET HERE . Check out my Budget planner here.

Want to learn how to save while getting paid biweekly?

You can read our blog post on the Bi-Weekly savings challenge for beginners here.

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Making It Easier: Apps to the Rescue

Thankfully, we live in an age where technology can do some of the heavy lifting. Here are a few apps that can make this whole budgeting thing a lot less painful:

• You Need a Budget (YNAB): This app is like a personal trainer for your money. It helps you allocate every dollar and encourages you to be proactive about your spending.
• Goodbudget: If you love the idea of envelope budgeting but hate carrying cash, this is your app. It lets you set spending limits for different categories and track your expenses easily.
• EveryTwo: Custom-built for bi-weekly budgeting, EveryTwo allows you to align your budget with your pay schedule, making it easy to manage your money precisely.

Sticking to Your Budget

Creating a budget is one thing; sticking to it is another ball game. Here are a few tips that might help:

• Review Regularly: Make it a habit to check in with your budget at least once a week. Adjust as needed and keep your goals front and center.
• Be Realistic: Don’t set yourself up for failure by tightening your budget. Leave room for a little fun – life is too short for all work and no play!
• Stay Flexible: Life happens. If unexpected expenses come up, don’t panic. Just adjust your budget and roll with the punches.

TIPS TO HELP YOU SAVE

1. Lower Your Variable Expenses

Your grocery budget, believe it or not, can be lowered. Yes it can. Yes, groceries are expensive, but you can do it. Put aside all those negative thoughts right now, telling you there’s no way you’ve tried.

I’ve been there, and I go back and forth, but every time I put in the effort, I’m still walking away from each week with less than $150 spent, even in 2024—almost 2025. To learn how to cut your grocery bill, check out this post.

Try to take advantage of as many cashback apps as possible. It will add up when you start trying to save a little bit on your spending. The best part is that you become more aware of what you are buying and what you actually need.

2. Embrace DIY Projects

 One of my favorite ways to save money is by embracing DIY projects. They save you a ton of money and are also a great way to unleash your creativity.

Take Sarah, for instance. She managed to save a whopping $200 a month by making her own cleaning supplies. Plus, she swears her house has never been cleaner!

Grab this free printable and other options here.

3. Adopt a Thrifty Lifestyle

Another great way to save money is by adopting a thrifty lifestyle. This doesn’t mean you have to live like a hermit. It just means being more mindful of your spending.

You won’t know what you cut back on until you start tracking your money. If you aren’t doing that, get started ASAP. For example, my friend Mike bought a Starbucks Grande latte three days a week at $5 a pop. He did this for an ENTIRE YEAR!

That’s $780 in lattes! Imagine if you did this daily. That’s just ONE example of thinking a smaller dollar amount doesn’t add up to much.

Find those spending leaks and see how to end them to get you back on track financially.

4. Get Creative with Leftovers

Did you know the average American household throws away 200 pounds of food yearly? Americans waste about 60 million tons of food every year. Shocking, right?

One way to save money (and reduce waste) is by getting creative with leftovers. Turn yesterday’s roast chicken into today’s chicken salad or chicken tacos. The possibilities are endless (and delicious)!

Search the terms cook once, eat twice recipes to inspire you.

Meal planning will save you so much money and it’s healthier for you. That’s a win-win.

5. Shop Secondhand

Who said secondhand has to mean second best? Shopping at thrift stores or online marketplaces can save you a bundle. I once found a designer dress worth $200 for just $15 at a thrift store.

Talk about a bargain! ( Follow me on Instagram and TikTok for those finds!)

If you are new around here check out my post on Goodwill bin shopping! If you have one of those near you, it can change your savings game dramatically.

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6. Automate Your Savings

Last but not least, automate your savings. Set up a direct transfer to your savings account every two weeks. This way, you’re saving without even thinking about it. Plus, it makes the Bi-Weekly Savings Challenge a breeze.

So there you have it, folks. Saving money doesn’t have to be a chore. With these hacks, you can make the Bi-Weekly Savings Challenge not just doable but enjoyable too.

So why not give it a try? And remember, every penny saved is a penny earned. Or, in our case, a penny towards that dream vacation, new car, or whatever your heart desires.

Happy saving, my friends!