There are many cases where employees or contractors are paid bi-weekly for their effort. To some, increased pay frequency is helpful to tackle debt loads and support investment decisions. Others can find it challenging to reconcile monthly costs to their bi-weekly pay. Regardless of one’s position, the bi-weekly budget tool will support users in their budgeting needs simply and effectively.
The Bi-Weekly Budget is divided into four major segments: Summary, Income, Expenses and Net Income Distribution. It provides users with the simplicity and clarity needed to understand the sources of income and expenses while giving them the necessary space to decide where the remaining resource should go to.
As you begin to work with the bi-weekly budget, determining the month that will be covered in the first step. Afterwards, it is important to understand the meaning of its six static horizontal lines and six-column headers in the summary. This is where all the information available in the bi-weekly budget will be put together succinctly.
Beginning Balance – This is a manually inputted segment that tells the user how much money is easily available (e.g. checking account).
Total Income – Formula that totals the amount in the income section for that specific column.
Total Expenses – Sums the expenses in its relevant table for that specific column.
Net Income – Total Income minus Total Expenses.
Net (Income) Distribution – Amount dispersed in the Net Income Distribution table.
Remaining – Residual value once expenses and net distribution are subtracted from income.
This segment is divided between Bi-weekly 1 and Bi-weekly 2, which for most use cases, it would be the first, second week of the month and the third, fourth week respectively.
Budget – This is a person’s estimation of their bi-weekly income, expenses and net income distribution.
Actual – Tells the user what happened to their income, expenses and net distribution.
Variance – Shows the difference between Actuals and Budget, helping to determine any discrepancies to support improved budgeting in the future.
Do note that for Bi-Weekly 2, the beginning balance uses a formula that assumes the summation of bi-weekly 1’s beginning balance and the remaining. It is possible to manually input it as needed.
In the income area, users are advised to list all the income sources. In this sample, Alison and Edward’s salary have been added, followed by a monetary gift.
The expense table should be used to list all relevant expense sources. It also contains a drop-down list of expenses that may be relevant to the user. It is possible to change the list by going to the ‘Config’ worksheet. Net Income will automatically sum the income and minus the expense.
Once it becomes clear how much money is available, it is now time to determine where that money will be distributed to help support a person’s goal. This may include but are not limited to, child education, emergencies, retirement, dental care and others. At last, the user can now see how much is remaining from the biweekly budget.
It is possible to have a negative remaining balance. It means that expenses and net income distribution have surpassed income and will likely need to be covered by the beginning balance or other sources.
To print the biweekly budget in excel, go to the relevant worksheet, then press CTRL+P or go to File->Print.