Budgeting with once-a-month paycheck.

[MrFun]

I guess the usual rule with salaries is that you're paid just once a month. That is what I found out with my salaried position I will start near Washington DC in mid-October.

I've never had to plan to budget with an income based on just one paycheck per month. How much more difficult/tricky is it for some to budget regular expenses a month in advance?

I now need to budget groceries for example differently from the way I budgeted for groceries with a bi-weekly paycheck.

Any basic guidance from those who have experience budgeting with a once-a-month paycheck would be appreciated.

[Pekka]

Doesn't make much difference, you still get paid the same. My suggestion is, so you adjust to the new way, to plan your expenses weekly. Or separate stuff like weekly grocery spending and rent plus other necessities, then what's left over is what you can fool around with or something similar. But I suggest a weekly cycle.

[pchang]

Salaried Positions

also pay
once every 2 weeks
twice a month

just depends on the job.

Pay your rent first and try to save as much as possible to make sure you can eat at the end of the month.

[Pekka]

I'm still a bit confused as to how this would change your spending per se? You get the same amount of money on the assigned pay and.... exactly what is the difference budgeting wise again?

[DirtyMartini]

If you have to even ask this question...there's clearly no hope.

By the way, what's does the job entail?

[MrFun]

Originally posted by Pekka
I'm still a bit confused as to how this would change your spending per se? You get the same amount of money on the assigned pay and.... exactly what is the difference budgeting wise again?

It's the same amount of money. So I guess the only difference in budgeting I thought would occur is that I have to save more money over a longer period of time than if I were to receive a bi-weekly paycheck.

[MrFun]

Originally posted by DirtyMartini

By the way, what's does the job entail?

I will be working as a research associate with Papers of Abraham Lincoln. My employer will be University of Illinois.

[Soltz]

If you're already in the habit of budgeting, you'll probably adjust pretty quickly.

The biggest pitfall is the first cheque will "seem" large and there will be a temptation to spend on something you really can't afford.

[Jon Miller]

Try to maintain your budget without looking at your bank balance, because that might trick you into spending too much at mid month. At the end of the month is when you should go out and buy things that you desire (new clothes, new computer, going out to eat, etc).

JM

[FrostyBoy]

In New Zealand I get paid weekly. Here in Singapore it's done monthly. While there doesn't seem like much difference, I prefer the monthly routine. It seems easier to save extra cash.

[Garth Vader]

If you are already good at budgeting it will be a breeze. If you suck it will be worse. I have always been paid once a month and it's no problem. I use a spreadsheet and put my known expenses, estimated expenses for groceries and such and income in ahead of time so I know how much extra I will have available. But from what I understand this isn't typical behavior.

[DirtyMartini]

If you want to get control of your spending, buy Quicken or some similar software. Not sure I could live without it at this point.

[snoopy369]

Easiest way to deal with things like this (my GF gets a quarterly stipend, even worse!) is to put the paycheck into a savings account (direct deposit) and then have your bank automatically transfer from that account to your checking account a set amount twice monthly. That way you still feel like you're getting a bimonthly paycheck.

You can also take rent into account with that (either leave the rent amount in the savings account and write checks off it, as most banks nowadays will let you write 3 checks/month off a savings account, or transfer a larger amount into the checking account during rent period). So if you make $2k a month net and then have $800 rent, you transfer:
$1400 - on the 1st
$600 - on the 15th
(or whatever is the best schedule for you based on your rent and bill due dates). That way your 'extra spending' money is the same always.

[Starchild]

I get paid every three months. I thank mr overdraft at the end of each quarter.

[pchang]

Screw It

Spend like you've got 2 weeks to live. Unless you are getting paid in gold Maple Leafs, your money won't be worth anything soon.