# Planning/Budgeting Difficulty



## karlitob (17 Oct 2012)

Hi all, 

Your help if you please. Just can't figure out the best way of planning/budgeting

I get paid fortnightly.
My wife monthly.
Our bills are mainly monthly. 
We calculate the general amount the bills will be and put that money from our current account into a special 'bills' account where all bills are paid from. 

Two problems:
i) Calculating my income. 
- Since I get paid fortnightly and that we calculate bills monthly, I simply just double my fortnightly income and plan from there. But since I am paid 26 times a year (since I am fortnightly, I 'lose' money. I can't account for it. 

- €1000 per fortnight
- €2000 per month (I just double my 'fortnight)
- €24000 per year (if I x12 my 'monthly' figure - which is essentially what I do as I plan monthly)
- €26000 is what I actually take home (ie I 'should' multiply my fortnightly x26)

So, in essence I can't account for €2000

Oh I hope that makes sense to someone. 


ii) Calculating my bills
Because, like many others I am sure, I get paranoid about not paying bills. I have a separate 'Bills' account. In there I put what I think the bills will cost for the next month (naturally the normal stuff is set but I put in, for example, €50 per month for ESB and another €50 per month for gas - some months I'm up and some I'm down) ie Monies from our current acc in Jan go into the bills account in Jan for the bills coming out in Feb. The problem with this is that I could have a whack of money in the account that is essentially just sitting there (Again, I hope that makes sense). I have tried to plan what dates exactly my bills come out but is hard to pinpoint exactly. 

- can anyone suggest ways of improving this. 


Thanks for your help.


----------



## wbbs (17 Oct 2012)

To get your correct monthly multiply your fortnightly by 26 and divide by 12.


----------



## karlitob (17 Oct 2012)

Thanks for that - it makes perfect sense. But I'm afraid that I am counting more than I have. e.g. By my above calculations, as you suggested, I would have €2166.66 per month (x26 /12) instead of €2000. But will I have that money ie am I taking money that I'm averaging over the whole year into my account but haven't yet received it? 




Any suggestions on the bills end of it? 

Thanks again


----------



## becky (17 Oct 2012)

I get paid 2 weekly and divide by 2, multiply by 52 and divide by 12.

So in you case your monthly pay is 2166.67.  That by 12 is €26000, so you're you're under declaring your monthly by €166.67 a month.


----------



## karlitob (17 Oct 2012)

Hi - had a better think about it. Just nervous about a new way of doing it eh. Thanks


----------



## karlitob (17 Oct 2012)

Hey Becky, thanks for that. I've slowly realised that what you've said makes perfect sense. I guess I am worried that since its an average as such there may be a time that this money isnt in my account so that I can look at it. Not sure if that makes sense. 

Thanks for your post.


----------



## karlitob (17 Oct 2012)

Hi Cashier - thanks for the welcome and the very helpful post. I have always thought of myself very good with my finances but the difficulties with weekly v monthly v annual has meant that I haven't had the level of control that I am used to. So this will def keep me on track. 

Does anyone use any apps to maintain their budget or spreadsheet only?


----------



## vandriver (17 Oct 2012)

Get a calender and mark all your paydays on it.Every month will have 2 paydays.This is your wages to spend and budget from.You will notice that 2 months of the year have 3 paydays.Take the third payday of that month and use it for eg savings,Christmas,summer holiday etc.I've been doing this for years,you don't even realise you are saving!
As for the bills,I have averaged all my bills and direct debit a set amount per month into a separate account.Obviously,it would be better if you started this in spring,when your energy bills are falling,to let you build up a buffer.Maybe just put a few hundred extra in,then you don't have to worry about bills being paid.Review the set monthly amount every year and adjust accordingly.


----------



## vandriver (17 Oct 2012)

Ge


----------

