Mortgage Goal - Every two weeks

Hi all,

My mortgage is paid bi-weekly which means I have a few months where my funding goal needs to be different than other months. For example, in May, I had 3 payments versus 2. But my funding goal is for a monthly funding goal, so now I'm short of my goal. How would recommend I adjust my goal to accommodate this?

Thanks,

Julie

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  • It really depends on whether you're budgeting on a bi-weekly basis as well, in which case you're used to making manual budget entries and ignoring Goals. Just budget for the mortgage off the top and call it done.

    If you're not budgeting on a bi-weekly basis, then I would treat the 3rd payment as a true expense with its own category and Save-By goal. Alternatively, if you're comfortable doing the math, you can just budget the extra in the normal mortgage category (possibly using a Monthly Funding goal for ease of entry).

    Be aware it will occasionally only be 5 months between those 3-payment months, so check the calendar to confirm the timeline.

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  • I budget more then may bi-weekly mortgage payment in order to cover that 3rd one every 6 months. 

     

    Just take your mortgage payment, multiply by 26, then divide by 12 to get your monthly number :) it slowly accumulates then when that 3rd one hits, you dont even notice

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      • dakinemaui
      • dakinemaui
      • 10 mths ago
      • Reported - view

        anderso9 I'm afraid it's not that simple. That approach will come up short if started in any of the 10 months that do not immediately follow a 3-payment month. It will also fail when only 5 months separate the 3-payment months.

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      • anderso9
      • anderso9
      • 10 mths ago
      • Reported - view

      dakinemaui yes that's true, you would have to start it in the month following the 3 month payment for it to work. However, it's far easier to cover the small outstanding amount, than the entire mortgage payment. 

       

      The 5 month gap would also be an issue, but again you have most of it already saved up. 

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  • I used to have something similar. Every time I would get paid, I would transfer $x to an investment account. I was paid every two weeks. What I did was set up a goal for the normal 2 paycheck month. When the twice a year 3 paycheck months occurred, I would just increase my category by an additional payment.

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  • Thanks everybody! I couldn't see the forest through the trees. Since May was the first time this hit, I think I will set up a category of "Extra Mortgage Payment" and set the monthly goal there. I appreciate you all! Stay safe and healthy.

    julie

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      • MXMOM
      • MXMOM
      • 10 mths ago
      • Reported - view

      Slate Gray Transistor what I would suggest is to set up the mortgage payment as a recurring payment every 2 weeks. When you budget for the month, you can budget for upcoming and that way it sets enough aside for the 3 payments in the applicable months. This rather than funding goal. I use a funding goal as an amount for a category that I don't know how much I am going to spend in a particular month but on average I spend a certain amount or I want to ensure I don't go crazy in that month. For example, clothes.   I have a $75 monthly funding goal for clothes. Every month I dump $75 in there. Some months I use some, others I don't. The available amount may grow and then I need to buy boots but the money is there. Another one I do like this is restaurants. I do this to limit the amount to a present basic number. When we do the budget we review whether the available amount is sufficient to deal with any upcoming plans and tweak. But the monthly funding goal makes sure we don't accidentally overlook it.  

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      • Herman
      • herman
      • 10 mths ago
      • 1
      • Reported - view

      Slate Gray Transistor This is also the way i would handle it.  If I had the means, I would also "seed" that category with about a payment worth so that i never had to be concerned about the oddities of the calendar.  

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  • There's weekly goals now, so I plan to just divide my biweekly payment by 2 and make that a weekly goal. 

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  • focus on your goal

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