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 

 

Thanks

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    • eloquentz
    • Numbers Wizard (Accountant), Acoustic Artist (Musician) and Jill of all Trades (Wife & Mother)
    • eloquentz
    • 2 mths ago
    • Reported - view

    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.

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  • 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.

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  • If these bills are not well aligned to your budgeting interval, you might investigate whether it's possible to switch to a different billing interval.

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  • eloquentz said:
    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.

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      • eloquentz
      • Numbers Wizard (Accountant), Acoustic Artist (Musician) and Jill of all Trades (Wife & Mother)
      • eloquentz
      • 2 mths ago
      • Reported - view

      dakinemaui My budget target does the smoothing to an annual amount for me, so it still works, but it takes time to get ahead enough to cover it all. The extra payments also align with when we get extra income because week are paid biweekly on opposite weeks, so every week there is more month to budget. It's actually the monthly things that I find trickier to budget than the weekly things.

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  • 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.

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