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How much to set aside each paycheck for bills

Monthly bills are easy to remember. It's the car insurance every six months, the yearly registration and the property tax that land on a credit card. Add every bill once, at whatever frequency it actually comes, and get one number to set aside from each paycheck.

Your set-aside amount

How often you're paidEvery 2 weeks (26 a year)Every week (52)Twice a month (24)Monthly (12)

Bills

Bill	Amount ($)	How often
		WeeklyEvery 2 weeksMonthlyEvery 2 monthsQuarterlyEvery 6 monthsYearly	×
		WeeklyEvery 2 weeksMonthlyEvery 2 monthsQuarterlyEvery 6 monthsYearly	×
		WeeklyEvery 2 weeksMonthlyEvery 2 monthsQuarterlyEvery 6 monthsYearly	×
		WeeklyEvery 2 weeksMonthlyEvery 2 monthsQuarterlyEvery 6 monthsYearly	×
		WeeklyEvery 2 weeksMonthlyEvery 2 monthsQuarterlyEvery 6 monthsYearly	×
		WeeklyEvery 2 weeksMonthlyEvery 2 monthsQuarterlyEvery 6 monthsYearly	×
		WeeklyEvery 2 weeksMonthlyEvery 2 monthsQuarterlyEvery 6 monthsYearly	×
		WeeklyEvery 2 weeksMonthlyEvery 2 monthsQuarterlyEvery 6 monthsYearly	×
		WeeklyEvery 2 weeksMonthlyEvery 2 monthsQuarterlyEvery 6 monthsYearly	×

+ Add a bill

Recalculate

Example numbers are made up. Nothing you enter is saved or sent anywhere.

How it's calculated

Each bill is converted to a yearly amount, then divided by the number of paychecks you get in a year:

yearly total = Σ (bill amount × times per year)
set aside per paycheck = yearly total ÷ paychecks per year

The "for non-monthly bills" figure is the part that matters most. That money goes into a separate account and stays there until the big bills come due. In the example, $6,144 of yearly bills that aren't monthly works out to about $236 from every biweekly check. Set that aside, and when the $1,840 property tax bill shows up, the money's already there.

Want this as a spreadsheet you can keep? A household tracker is coming soon — in the meantime, see the store.

Don't forget these

• Car insurance, if it's billed every 6 or 12 months
• Vehicle registration, inspection and personal property tax
• Property tax and homeowners insurance, if they aren't escrowed
• Annual subscriptions and memberships, domain names and software
• Back-to-school costs, holidays and birthdays
• Car maintenance and tires, which aren't bills but always come up

Questions people ask

What is a sinking fund?

Money you set aside a little at a time for a bill you know is coming, like car insurance every six months, property tax, or holiday gifts. When the bill arrives, the money is already there.

Where should I keep the set-aside money?

Anywhere you won't spend it by accident. A separate savings account, even at the same bank, works well. Some people keep one account just for bills and have the set-aside amount move into it automatically on payday.

Why isn't it just my monthly bills divided by two?

Two reasons. The number includes your yearly and twice-a-year bills, spread out so each paycheck covers a share of them. And if you're paid every two weeks, you get 26 checks a year, not 24, so each check needs to cover a little less than half a month.

What if I'm starting late and a big bill is due soon?

Divide what you still need by the paychecks left before it's due, and set that much aside until the bill is paid. Then go back to the regular amount.

Should I include things that aren't bills?

Yes, if they're predictable: car maintenance, school costs, gifts, annual subscriptions. They're the ones most likely to end up on a credit card.

Related tools

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Not financial advice. These calculators give estimates from the numbers you enter. Your lender's terms, fees, day-count method and tax situation can change the result. Check with your lender or advisor before you act. Full disclaimer.