A bi-weekly pay schedule can be challenging, especially with varying dates. Sometimes you'll even get three paychecks in a month. Remember, you'll have at least two paychecks every month.
If you're paid bi-weekly, show the entire amount of your last paycheck in the month you receive it in EveryDollar, even though some money from that paycheck will be used for next month's bills until your first paycheck kicks in during that month. For instance, if you get paid on March 25th, use it for remaining March expenses and April bills that you have to pay before your first check in April arrives.
Here’s an example:
You get paid on Friday, March 25th, and the paycheck is $2,300. You will show that paycheck under the Income group in March's budget and you will enter the entire amount of $2,300 under the Planned column in March. You figure it will take $400 to get you through the rest of March (covering food, gas, bills, etc.). You also have a house payment of $1,100 due at the beginning of April. And the remaining $800 of that paycheck will be used for expenses that you have at the beginning of April until you get paid again on April 8th. Again, you will show the entire paycheck amount of $2,300 in March's budget, even though you are using most of it to cover bills at the beginning of April. The same thing will happen with your final paycheck in the month of April, it will cover expenses to get you through the rest of April (covering food, gas, bills, etc.) and then it will also cover the house payment you have to pay and other expenses at the beginning of May until your first paycheck of May kicks in.
If you get three paychecks in a month, you’ll do pretty much the same thing. Let’s say you get paid on Friday, September 2, as well as the 16th and 30th. By the time you get that last check, September’s budget is done, and you’re on to October. You can still show that final paycheck you received on the 30th in Septembers budget even though you will likely use most of the money from it in the month of October, you will still show the entire paycheck amount in September's budget.
Plan ahead and budget accordingly to stay on track.
💡 Pro Tip: If you receive a paycheck on the last day of the current month (on the 30th or 31st for example) you can show that paycheck in the next months budget if you want (especially if you will use all of the money from that check in the following month). As long as you handle things consistently with regards to your paychecks it will balance out.