Penny PaydayThe example
One person, paid $1,000 every other Friday, with these monthly bills:
| Bill | Due | A month |
|---|---|---|
| Rent, your share with a roommate | 1st | $850 |
| Electric and internet | 25th | $120 |
| Phone | 12th | $40 |
| Monthly bus pass | 1st | $70 |
| Streaming and apps | 15th | $20 |
| Card minimum | 18th | $40 |
| Total | $1,140 |
Two checks a month, so each check covers half: $1,140 ÷ 2 = $570. The check that lands before rent is due won't always hold exactly half; here's how to even it out.
No car in this example: a $70 bus pass instead. A car would add insurance and gas, and at this check size that comes straight out of the daily number.
One check, start to finish
| Take-home check | $1,000 |
| Half the monthly bills | −$570 |
| Set aside | −$35 |
| Groceries for two weeks | −$150 |
| Left for day to day | $245 |
| ÷ 14 days = $17.50, rounded down | $17 a day |
| Left over at payday (14 × $17 = $238) | $7 |
$17 a day covers everything not on the list: food out, coffee, a store run. Spend less one day and the days after get a little more; spend more and they get less. To see it with your own numbers, open this example in the calculator and change what's different.
Where the $1,000 goes
| Part | Amount | Share of the check |
|---|---|---|
| Bills (half the month) | $570 | 57% |
| Set aside | $35 | 4% |
| Groceries $150 | $150 | 15% |
| Day to day, including the $7 left over | $245 | 24% |
| Total | $1,000 | 100% |
Shares are rounded to whole percents.
Compared with the 50/30/20 rule of thumb
The 50/30/20 rule of thumb splits take-home pay into 50% needs, 30% wants and 20% savings. On a $1,000 check that's $500 for needs, $300 for wants and $200 for savings.
In the example, needs (the bills, groceries) take $720, 72% of the check. Half the rent alone is $425, 42%. When rent is that big a share, the rule's split doesn't fit, and the set-aside starts smaller ($35, 4%). It's a rule of thumb, not a rule; the daily number is what tells you whether the check works.
If your numbers are different
- Every extra $100 of bills on this check takes about $7 off the daily number ($100 ÷ 14 = $7.14).
- Two months a year bring a third check: $3,000 that month instead of $2,000. Find your 3-paycheck months.
- Hours change from check to check? Plan on your lowest regular check and treat anything above it as extra when it lands.
- Paid weekly instead? A $500 weekly check is the same money; plan it over 7 days.
Questions
How much is $1,000 biweekly a month?
$2,000 in most months, from two checks. Averaged over the year it's $2,167 a month (26 checks ÷ 12 months), because two months bring a third check of $1,000.
How much is $1,000 biweekly a year?
$26,000 in take-home pay over 26 checks. Some years have 27 paydays, which makes it $27,000.
How much can I spend a day on $1,000 biweekly?
There's no single right number: it's what's left after the bills due before your next payday and what you plan to set aside and buy, divided by 14. In this made-up example it's $17 a day. Try yours in the calculator.
Penny does this with your real numbers. Type your check and bills once; every payday she splits the new check and gives you one number a day.
Other paycheck sizes: $900 biweekly · $1,100 biweekly · All paycheck sizes
This page does arithmetic on example numbers. It is not financial advice.