Bills paid weekly
How do I budget bills that I pay weekly?
I have 2 bills I pay every week.
1. Balance is 800 - 95.00 a week
2. Recurring bill of 200.00
Suggestion are welcome
Most of my bills are weekly or biweekly. I have a monthly goal of the average monthly amount, but as of yet, I am not far enough ahead to catch those months that have 5 week or 3 biweekly payments, so in those months I just budget the payment that needs to happen and budget less for something else that month.Reply
It will depend greatly on your budgeting/income cycle.
If paid weekly, budget to those categories from every check. If paid bi-weekly, budget 2x the weekly amount to those categories from every check.
If you're paid monthly (or are ahead enough to budget all income into next month's area), budget 4x the weekly amount to those categories. Four times each year, you will have to make an extra payment, so I would save for this extra payment in a dedicated (second) category. Set a Target Amount by Date goal for the next 5-payment month and save up as you would for any other category. Move those funds to the main category when you need them and reset the goal for the next 5-payment month.Reply
I am not far enough ahead to catch those months that have 5 week or 3 biweekly payments
You might consider the True Expense concept for the "extra" payment months. Spreading those "extra" payments out across multiple months substantially reduces the hit. Also makes for a more consistent budget, which is easier to use and less error prone.Reply
I think the best way to accomplish this if you budget monthly would be to simply budget 4 and 1/3 times the weekly amount so over the course of a year it will average out correctly. Though at first you may find the 5th week won't line up with when you have enough for it but if you can budget enough extra to make it in that month then from there on you should find it averaging out for you.Reply