Penny PaydayThe example
One person, paid $1,300 every other Friday, with these monthly bills:
| Bill | Due | A month |
|---|---|---|
| Rent | 1st | $1,050 |
| Electric and internet | 25th | $130 |
| Phone | 12th | $60 |
| Car insurance | 5th | $130 |
| Streaming and apps | 15th | $30 |
| Card minimum | 18th | $40 |
| Total | $1,440 |
Two checks a month, so each check covers half: $1,440 ÷ 2 = $720. 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 | $1,300 |
| Half the monthly bills | −$720 |
| Set aside | −$55 |
| Groceries for two weeks | −$170 |
| Gas for two weeks | −$60 |
| Left for day to day | $295 |
| ÷ 14 days = $21.07, rounded down | $21 a day |
| Left over at payday (14 × $21 = $294) | $1 |
$21 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 $1,300 goes
| Part | Amount | Share of the check |
|---|---|---|
| Bills (half the month) | $720 | 55% |
| Set aside | $55 | 4% |
| Groceries $170, gas $60 | $230 | 18% |
| Day to day, including the $1 left over | $295 | 23% |
| Total | $1,300 | 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 $1,300 check that's $650 for needs, $390 for wants and $260 for savings.
In the example, needs (the bills, groceries and gas) take $950, 73% of the check. Half the rent alone is $525, 40%. When rent is that big a share, the rule's split doesn't fit, and the set-aside starts smaller ($55, 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: $3,900 that month instead of $2,600. 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 $650 weekly check is the same money; plan it over 7 days.
Questions
How much is $1,300 biweekly a month?
$2,600 in most months, from two checks. Averaged over the year it's $2,817 a month (26 checks ÷ 12 months), because two months bring a third check of $1,300.
How much is $1,300 biweekly a year?
$33,800 in take-home pay over 26 checks. Some years have 27 paydays, which makes it $35,100.
How much can I spend a day on $1,300 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 $21 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: $1,200 biweekly · $1,400 biweekly · All paycheck sizes
This page does arithmetic on example numbers. It is not financial advice.