How to Budget When You Get Paid Twice a Month

By Cedar & Ledger

Getting paid twice a month (often called semimonthly) usually means a check on the 15th and one on the last day of the month. That's 24 paychecks a year, not 26 like every-two-weeks pay. It's actually one of the easier schedules to budget, because every month looks the same. The catch is that rent and other big bills often land on the same check, so one half of the month feels tight and the other feels loose.

Every amount below is a made-up example to show the steps, not a real budget. This is general information, not financial advice.

Quick checklist

• ☐ Confirm your two paydays and what happens when one lands on a weekend
• ☐ Write down your take-home pay per check
• ☐ List every bill with its due day
• ☐ Give each bill to the check that arrives before it's due
• ☐ Split everyday spending in half, one half per check
• ☐ Even out the heavy check by setting money aside from the light one
• ☐ Check the plan each payday

Twice a month vs. every two weeks

These two get mixed up a lot, and the difference matters for your budget.

With twice-a-month pay, each check is a bit bigger and every month gets exactly two. You don't get "extra" paycheck months, but you also don't have to plan around them. If you're paid every two weeks instead, see How to Budget by Paycheck (Biweekly Budget Guide).

Step 1: Pin down your paydays

Look at your pay stub or ask payroll. Common setups are the 15th and the last day, or the 1st and the 15th. Also ask what happens when a payday falls on a weekend or holiday. Many employers pay the business day before, some pay after. The gap between checks is usually about 13 to 16 days, so plan for the longer gaps too.

Step 2: Give each bill to a check

A bill belongs to the last check that arrives before its due day. With checks on the 15th and the last day of the month:

• Bills due from the 1st to the 14th come out of the last-day check from the month before.
• Bills due from the 15th to the end of the month come out of the 15th check.

Example (made-up numbers), take-home $1,600 per check:

That's $1,315 of bills on the last-day check and $706 on the 15th check.

Step 3: Split everyday spending in half

Groceries, gas and spending money don't have a due date, so split them evenly. In the example, groceries $400, gas $160 and personal spending $200 a month add up to $760, or $380 per check. Because there are exactly two checks a month, halving a monthly amount works cleanly.

Step 4: Even out the heavy check

Now look at what's left on each check in the example:

• Last-day check: $1,600 − $1,315 bills − $380 everyday = −$95 (short)
• 15th check: $1,600 − $706 bills − $380 everyday = $514 left

The month as a whole works ($419 left over), but the rent check doesn't. Two common fixes:

1. Set some rent aside from the 15th check. In the example, moving $300 from each 15th check into a separate "bills" account or envelope brings rent's check down to $1,015 of bills. That leaves about $205 on the last-day check and $214 on the 15th check.
2. Ask to move a due date. Moving a bill like the phone or car payment to the other half of the month can do the same job. Many companies will change a due date if you ask; see How to Set Up Autopay Without Overdrafting for matching autopays to paydays.

Whatever is left on each check after that can go toward savings, debt or a small cushion.

Step 5: A quick check each payday

1. Move the set-aside (in the example, $300 on the 15th) first.
2. Look at what's due before the next check.
3. Compare last half-month's spending to the plan and adjust one line if needed.

Common snags

• Payday moves for a weekend. If you get paid a day or two early, the next gap is longer. Don't treat the early money as extra.
• Thinking you get a bonus check. That's biweekly pay. (If you are paid every two weeks, see What to Do With a Three-Paycheck Month (Example Numbers).) Twice-a-month pay has no third-check months, so plan savings into each regular check instead.
• Yearly bills. Divide the yearly cost by 24 and set that aside each payday (example: a $480 yearly bill is $20 per check).
• Groceries run out in the long gap. Some halves of the month are 16 days, some are 13. Keep a little extra in the grocery line for the longer ones.
• Still always short before payday? Building a one-month cushion can take the pressure off; see How to Get One Month Ahead on Bills.

If you're living paycheck to paycheck and one check is always short, How to Stop Living Paycheck to Paycheck (First Steps) starts with the timing, then a small cushion.

A spreadsheet that handles twice-a-month pay

Paper and a calendar work fine. If you'd like a spreadsheet, the Paycheck Budget ($7, Excel and Google Sheets) lets you pick weekly, every-two-weeks or twice-a-month pay, lists every paycheck for the year, and puts each bill on the check before its due day so you can see what each check has to cover and what's left (details). It's a spreadsheet, not an app: it doesn't connect to your bank, and you type in your own numbers. The free Starter Budget Sheet is a simple planned vs. actual budget if you just want to get started (details).

Honest note: I make these templates and sell them under Cedar & Ledger, so I'd earn from a purchase. General information only, not financial advice.

Try the free paycheck budget calculator (which check pays which bill) →

Related template: read about the paycheck budget template

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