There are many different budgeting/savings methods out there for your entire paychecks, but this method specifically focuses on how to budget bills.
We use this method every week when my fiance gets his paychecks so that we ensure that we always have the money to cover our bills. It is SO simple and easy to do that no matter what your income is, you can do it too.
How to Budget Bills Weekly
The first thing I did was look up our bill history for fluctuating bills like the electric bill and write down the highest bill price. Then I wrote down our other bills that do not change month to month like the cable bill.
It would look like this (the order doesn’t matter you are just trying to get a total number):
Car Insurance $200.00
Total = $1,435.00
After you have your highest possible monthly total you divide the total by the number of checks you get per month.
So if you get paid every Friday, you would divide $1435.00 by 4.
With these numbers that gives you $358.75. That means that out of each check you would need to save $358.75 in order to pay all of your bills for the month. If you do this each check and set it aside no matter what, you will always have enough money to cover your bills each month.
We have a separate account that is bill money only and that account doesn’t get touched for anything other than bills.
If you want to be extra safe you can round your weekly savings number up so that if one of your bills has a high month you have extra money to cover that. We have been doing this for years now and have never once not had the money for one of our bills.
This method really works and it is extremely simple to follow!