So if I wanted I could subtract the extra from the electric category to make a zero balance in cable, or if I know that sometimes my cable bill is lower than $100, I could just wait till it evens out, if there’s a cushion of cash in the account. The cable bill was a little higher than estimated. You can see in the example below that after the mortgage was paid for the month, there was $2 left in that category till the next paycheck. Whether you use a debit card, checks, or online bill pay, when you buy or pay something, you will subtract it from the matching category on your budget sheet and your checking account. That way when they’re due, the money is set aside in your account and available. Since theoretically you get paid 2 times a month, you would divide that by 2, which means you assign $50 out of each paycheck to go towards taxes. If the mortgage is $1000 a month, and you get paid twice a month, you would designate $500 out of each paycheck for that bill.įor other bills like real estate taxes that may be due twice a year, you can take the amount you would pay every 6 months, in our example $600, and divide that by 6 which would be $100 a month. So for each monthly bill, you would divide the amount needed by 2, and take that amount out of each of the 2 monthly paychecks. On the example, the net pay for one out of two paychecks a month is: $1600 ($3200 for the whole month). the amount to designate from your checking account each paycheck for each category.On the budget ledger page you will write down: So for example, if your family gets paid every other Friday, so basically twice a month, here is a simulated example to show you the process. You can keep track with this printable ledger.

I’ve made a printable with potential expenses you may have.Īfter you’ve determined your bills and spending categories, decide what the average cost (or the highest potential cost) is for each one monthly, and then divide that amount by the number of paychecks you get in each month. In this way of budgeting you are assigning all of your paycheck to specific categories while keeping your expenses equal to or less than your income. So first, write down what bills/categories you have expenses in each month, quarter or year (like real estate taxes) etc… and then things you want to save for like home or car repairs etc…If you’re able, it’s nice to be able to save for vacations and holidays also. what expenses are likely to come up in the future like health care, car expenses, home maintenance, etc….what bills are due monthly, quarterly or yearly.Let me explain how this method of budgeting (sort of a zero based budgeting) can work really well for you too because you’ll know exactly how much you have available for each bill when they’re due. Now that doesn’t mean I’ve always stuck to the budget, but I’ve always had a target to shoot for.

I’ve been budgeting for my family for 30 years. If you don’t easily know these things, it sure can be a tough way to live. Or, are you adding and subtracting in your head to see if you can pay everything by their due dates? When you sit down to pay bills do you know ahead of time whether or not you have enough money in your bank account to pay them?

Free printable budget planner 2020