How to budget between paydays: a fortnightly planning guide

Why a payday plan helps

When you're paid fortnightly, bills rarely line up with your pay dates. A payday plan simply decides where each pay is going before it arrives, so irregular costs and savings don't get squeezed out by everyday spending.

Step 1: List what's coming in

Write down your net (after-tax) pay for the cycle. If your pay varies, use a conservative recent average rather than your highest pay.

Step 2: List what's due before the next payday

Capture every bill with a due date inside this cycle: rent, utilities, subscriptions, loan repayments and anything else fixed.

Step 3: Allocate to sinking funds

Irregular costs like car registration, insurance and rates become small, regular allocations. Divide each annual cost by the number of pays in a year (26 for fortnightly) and set that aside each pay.

Step 4: Set a spending buffer

What's left after bills and sinking funds is your free-to-spend amount for groceries, transport and everyday costs. Giving it a number stops it from drifting.

Step 5: Review before the next payday

A few minutes the night before payday keeps the plan honest and lets you adjust for anything that changed.

Where to read more

ASIC's Moneysmart service provides free, independent budgeting guidance for Australians, including a budget planner and savings goals calculator. We link to the official site below so you can read the detail directly.

Payday Compass is an organisational tool, not financial advice. For personal advice, consider a licensed professional.