Penny PaydayThe example
One person, paid $1,200 every other Friday, with these monthly bills:
| Bill | Due | A month |
|---|---|---|
| Rent, your share with a roommate | 1st | $1,000 |
| Electric and internet | 25th | $130 |
| Phone | 12th | $60 |
| Car insurance | 5th | $130 |
| Streaming and apps | 15th | $30 |
| Card minimum | 18th | $40 |
| Total | $1,390 |
Two checks a month, so each check covers half: $1,390 ÷ 2 = $695. The check that lands before rent is due won't always hold exactly half; here's how to even it out.
The car in this example is paid off: insurance and gas, no car payment.
One check, start to finish
| Take-home check | $1,200 |
| Half the monthly bills | −$695 |
| Set aside | −$45 |
| Groceries for two weeks | −$160 |
| Gas for two weeks | −$60 |
| Left for day to day | $240 |
| ÷ 14 days = $17.14, rounded down | $17 a day |
| Left over at payday (14 × $17 = $238) | $2 |
$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 $1,200 goes
| Part | Amount | Share of the check |
|---|---|---|
| Bills (half the month) | $695 | 58% |
| Set aside | $45 | 4% |
| Groceries $160, gas $60 | $220 | 18% |
| Day to day, including the $2 left over | $240 | 20% |
| Total | $1,200 | 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 $1,200 check that's $600 for needs, $360 for wants and $240 for savings.
In the example, needs (the bills, groceries and gas) take $915, 76% of the check. Half the rent alone is $500, 42%. When rent is that big a share, the rule's split doesn't fit, and the set-aside starts smaller ($45, 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: $3,600 that month instead of $2,400. 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 $600 weekly check is the same money; plan it over 7 days.
Questions
How much is $1,200 biweekly a month?
$2,400 in most months, from two checks. Averaged over the year it's $2,600 a month (26 checks ÷ 12 months), because two months bring a third check of $1,200.
How much is $1,200 biweekly a year?
$31,200 in take-home pay over 26 checks. Some years have 27 paydays, which makes it $32,400.
How much can I spend a day on $1,200 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: $1,100 biweekly · $1,300 biweekly · All paycheck sizes
This page does arithmetic on example numbers. It is not financial advice.