TIP #7 - Budget for Two Paychecks a Month

Good morning!

Grab your flat white and enjoy.

This is tip #7 of nine tips I’m sharing over the next nine weeks. I hope you find something useful!

My wife and I have done this one for 15 years - when we’re paid every two weeks, we budget only two paychecks a month and get two “extra” bonuses every year.

Let me explain…

When you’re paid every two weeks, you receive 26 paychecks a year (sometimes 27!!).

If you build your budget using only two paychecks a month, then that uses 24 of those 26 paychecks.

The other two? Bonuses!

And to make it even more fun, those two “bonus” payments usually come every 6 months - so you no longer have to wait a full year for a bonus!

Consider these bonuses as unexpected and non-budgeted money - use my earlier tip and automatically put 20% of the bonus into your financial goals, then use the rest to travel, invest more, or live your ideal life.

This was an easy way for us to save money for our travel year - self-created bonuses.

TIP #7 - Budget for Two Paychecks a Month

Obviously, this only applies to you if you (or your partner) are paid every two weeks.

But for those of you who are paid every two weeks - you can create two bonuses this next year! ;)

Depending on how you’re budget is currently set up (assuming you have one), you may need to adjust for a bit smaller income - or if you just blew the third paycheck every six months, then plan to be more intentional with it in the future.

Once your budget is in place, twice a year you’ll receive a “third” paycheck in the month. That’s your bonus.

Treat it as extra money and without thinking put 20% toward your financial goals.

Next, decide how to divvy the remainder of the money among your priorities.

This will be even more satisfying if you earn an actual bonus - now you’ll get a traditional bonus and two self-created bonuses, every year!

In the next 30 minutes…

Figure out if you’re paid every two weeks (or semi-monthly, monthly, etc.).

If you’re paid every two weeks, think about how you’re budgeting:

• Do you already budget for only two paychecks?

• What do you do with the third paycheck in a month (you get two of them)?

Lastly, start to update your budget based on only two paychecks (and start dreaming of that first “extra” bonus check coming your way).

Remember, intentional money equals intentional life.

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I hope you all have an amazing week!

Quinn