How To Budget Weekly Pay (10 Super Simple Steps)

Last Updated November 30, 2023 by Davina Kelly

Do you want to learn how to budget weekly pay? These are some easy steps you can follow to create an effective budget.

I know that when you are paid weekly, creating a budget can be tricky.

Most bills are paid monthly, so when you are being paid weekly having a solid plan is essential. 

A good budget is well-planned and realistic. But being consistent and sticking to it will help you to reach your financial goals.

As someone who budgets their money, I am going to share some simple steps you can follow to create your budget.

You are going to learn how to budget weekly pay and feel confident you can stick to it.

After following these steps you will be able to create a budget for yourself that is simple and effective.

This post is all about how to budget weekly pay.

How To Budget Weekly Pay In 10 Simple Steps

Step 1. Know Your Income

To have an effective budget you need to know how much you are expecting to be paid. Your income will determine what you can afford to do so this will drive your budget. 

If you have a salary-paid job this can be easy to predict, but if you receive income from multiple sources such as freelancing or a side hustle I know it can be a little more difficult to plan. 

In those cases, you can use estimates. You can base it on the amount of work you have done or you can use averages based on what you have been paid in the past.

You want to make a note of all of your expected income for at least a month ahead. That way you can plan for the bills and other expenses you have coming up.

To do this you can use an Excel spreadsheet. You can make a list of your income sources, and the pay dates and note the amounts you expect to receive next to the dates. 

If a spreadsheet isn’t your jam you can use a calendar. You can print one out and write it down or you can use Google Calendar.

Choose a way that works for you, the most important thing is that you note down the expected amounts and dates as this is your starting point. 

Once you know the amount of income you are expecting you can plan, and assign each pay to the relevant activities.

Having a plan for your income will allow you to make smart choices with your money and reach your goals.

Step 2. Make a List Of Your Expenses and The Due Dates

The next step is to make a list of your expenses, including your bills.

As with all budgets, knowing your spending is important as you need to ensure you have enough money in your budget to cover it.

You need to make sure that you are aware of all of your expenses and when they are due to be paid.

This is very important as paying your bills late can affect your credit score and you can incur late fees, and we don’t want those problems lol 

Make a List Of All Of Your Expenses and Their Due Dates

You can add this to your chosen method, if you use an Excel spreadsheet add a section for expenses and include them there. If you use a calendar add them to the calendar.

If your expenses are variable, you can estimate or use the average amount based on what you have paid over the last 3 to 6 months.

To make paying your bills and expenses easier, I recommend setting them up to be paid by direct debit. This would just make the process simple.

You can choose a date that works for you i.e. the beginning of the month, the 1st, or the end of the month, the 31st. 

If you don’t want to have a large amount of payments leaving your bank account on one day you can spread them out during the month. 

For example, you can have all your bill payments like rent and utilities set up to leave your account on the 1st of the month.

Then you can have all of your expenses such as subscriptions, and gym membership set up to leave your account on the 15th of the month.

Set this up in a way that works best for you. If you don’t mind all of your payments leaving your account at the same time, then you can have them all set up to be paid on one date.

Whichever method you choose you just need to ensure that you are organised and plan.  

Step 3. Make a List Of Your Other Expenses

Now that you have noted all of your essential bills and expenses, you need to make a list of all the other expenses you have every week.

Other expenses include things such as groceries, travel, petrol, etc. Anything you need to pay for every week should be included in this section.

You need to calculate how much you need to spend and create a weekly budget for these types of expenses.

To do this you can look at how much you spend every month and split the cost over each week.

For example, if you spend $200 a month on groceries, you can divide that over 4 weeks and budget $50 a week.

Once you have gone through all of your expenses and calculated the costs you can include these under the expenses section of your budget.

I would recommend having the money for these expenses in a separate account. Doing this will make the budget process easier.

Step 4. Know What Your Goals Are For Your Money

Aside from knowing your income and expenses, it is important to know what your goals are for your money.

Having clear goals for your money will motivate you and help keep you on track when it gets tough.

Also having something to aim for will stop you from wasting any money because you will have something you are working towards.

Your goals can be things such as paying off debt, investing in the stock market, saving for a property, etc.

These goals are a major key for your finances and need to be included in your weekly budget.

If you have any debt I would make paying it off a priority. Debt incurs interest, so the longer you have it the more expensive it is.

Also paying off debt will allow you to have more money to put towards your other goals like saving or investing.

Make a List Of Your Goals

Once you have decided on your goals you should make a plan. See an example below.

• Debt:

If your goal is to pay off any debts, make a note of how much you owe.

Calculate how much you need to repay each month, then divide that amount by each week and include this amount in your budget.

Or you could include the monthly amount in the bills and expenses section of your budget and pay it at the same time.

• Saving:

If your goal is to save for a property, for example, calculate how much your deposit is.

Then decide when you want to have this amount saved, it is important to have a deadline for this.

Then calculate how much you need to save each month, divide that amount by each week, and include the amount in your budget.

• Investing:

If your goal is to invest in the stock market, you can decide how much you want to invest for the year. Or you can figure out how much you can afford to invest each month.

Once you have decided on your approach you can calculate how much you need to put aside each month. Then divide that amount by each week, and include the amount in your budget.

This is an important category to include in your budget because it will help you to grow your money which is an important part of personal finance.

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Step 5. Create An Emergency Fund

Having a pot of money for any emergency bills that may come up is important. 

This will give you peace of mind as you will essentially have a safety net, and it can prevent you from having to use a credit card or an overdraft which can lead to you having debt.

It is ideal if we don’t have any emergency bills, but unfortunately, that isn’t how life works.

Your emergency fund can include funds for things like unexpected car or home repairs and even job loss. If you can, I would suggest you try to include at least 3 months of expenses in this pot.

It would be best if you put aside how much you can afford each week, the key here is to top this fund up consistently. Or you can put a lump sum into this pot if it is easier for you.

Have a look at your budget so far, and decide how much you want to put into this pot. 

Calculate how much you need to put aside each week and include the amount in your budget.

Step 6. Ensure You Include a Fun Allowance

Now that we have all of the important, essential expenses included in our budget we can include a personal allowance.

This allowance is for fun things like dinner out with friends, booking theatre tickets, beauty treatments, etc. Anything you like to do for yourself.

I believe it is important to include this in your budget as you still want to be able to do the things you enjoy while paying your bills and working towards your goals.

The amount you include in this allowance should be what is left over after paying for the essential bills and expenses above. 

Your goals should still be the priority, so if there are things you usually do that are not essential you may want to cut them out or find alternatives.

For example, if you usually get a manicure and pedicure each month you can try to start doing it yourself at home. 

You can buy the tools on Amazon and watch a YouTube tutorial to see how to get professional-looking results at home.

Or you can reduce the frequency of the treatments, doing this will save you money.

Calculate how much you need to put aside each week and include the amount in your budget.

Step 7. Have Separate Bank Accounts

Having different bank accounts for different purposes in your budget is a great way to make managing your money simple.

Doing this takes the guesswork out, as you know that each account has a purpose and you will be spending within a limit.

I would recommend having 3 – 4 separate bank accounts. See a breakdown of each account below. 

• Account 1

This is your current account, use this account to receive your income, and pay your bills and expenses.

The payments from this account should be set up on direct debit. If you are repaying debt you can also pay it from this account. 

• Account 2

This account can be used for your savings and your emergency fund fund.

You can transfer the amount you want to save from your current account to this account each week.

• Account 3

This account can be used for your other expenses, the ones you listed in Step 3. 

You can transfer the amount you need each week from your current account to this account.

• Account 4

This account can be used for your personal allowance, all the ones you listed in Step 6.

You can transfer the amount you need each week from your current account to this account.

It may seem like a lot to have multiple bank accounts, but having these accounts set up will help you stick to your budget.

This is because you will have a certain amount of money in these accounts that you calculated based on your needs.

Spending your money in this way will also make you mindful of how much you are spending, and may encourage you to cut back. 

Step 8. Plan As Far In Advance As Possible

A budget is essentially a plan, so when creating your budget you need to plan as far in advance as possible.

I would suggest that you plan for the year and then break your budget down into monthly, and then weekly amounts.

Doing this will ensure that you capture everything including any annual one-off costs you may have.

For example, annual car maintenance costs, MOT, and insurance.

Other annual expenses can include things like birthdays, weddings, and holidays.

If you know that you have these events coming up you can include the costs in your budget. We want to be as prepared as possible.

Make a list of all the annual expenses you have, and any events you have coming up within the year.

For these expenses, you can estimate as best as you can. Or if it is for something like insurance, you can use the previous year’s cost and add about 5% for inflation. 

Once you have calculated these costs you can include them in your budget. You can make a lump payment or you can create a separate pot and pay into it each week.

For annual expenses, I would suggest paying them upfront if you can. The benefit of this is you will have fewer things to pay for each month, and you can also save a little.

This is because there is usually an additional admin cost included to have these types of payments set up. So paying for it upfront will reduce the amount you have to pay. 

Step 9. Put It All Together 

Now that we have gone through all the steps for setting up a weekly budget it is time to put it all together.

I know at first it can be a little hard to get started so I have tried to make the steps simple and to the point.

If you need help putting your budget together, you can get a copy of a budget planner from my shop. 

The layout is simple and includes all of the budget categories I have listed above. You can change the types of expenses to what works best for you.

You can use this template to make your budget for the full year, or you can update it for the month and then divide everything by the number of weeks in the month.

Or you can just update it weekly, do what works best for you. 

Step 10. Create a Routine For Your Finances

Once you have your budget set up, you need to maintain it. You should create a routine for your finances the same way you would for anything else important in your life.

You should choose one day a week to check in with your finances. Once you have everything running smoothly you can check in bi-weekly or once a month.

By doing this you will see what is working and what may need to change and make the necessary adjustments. 

Each week on a Sunday or whichever day works best for you, you should sit down and check your bank accounts to ensure everything is as it should be and also update your budget.

You should make the process enjoyable. You can do this by lighting a candle or playing your favourite music. Whatever makes you feel comfortable include it in your routine.

Another Option

Another way to budget when you are paid weekly is to pool your income until the end of the month.

When you get paid each week you could transfer the money you need for any of your expenses that week into a separate account.

Leave the money you need to cover your bills and expenses which are paid via direct debit in your current account.

Then you could transfer what is left into another separate account.

Doing this will leave you will a lump of money at the end of the month, from this money you can then save, invest, and make a payment towards any debt.

For this to work you will still need to follow the steps above as you will need to be organised and have a plan.

The only difference is that you will pool the money in a separate account, and action the steps above at the end of the month instead of weekly.

I have shared some easy steps you can follow to budget when you are paid weekly. Now it is time to create your budget and reach your goals.

This post was all about how to budget weekly pay.