Bi-Weekly pay

[dragondad]

Little rant. Does anyone else despise bi-weekly pay? I hate it. Anytime my income is considered for something it complicates things. They say "take your yearly salary and divide by 12" Yea, but that is not how I get paid!! 10/12 months my pay is lower and THAT is what I have to base my budget on!! The high pay months get eaten up by annual expenses, or just shift some payments, because the month following the high pay month, that 1st check comes so late it misses a bunch of bills! Ugh!!

[TBA]

i get paid commission, usually only monthly. and it varies A LOT (usually by 1-3k or more per month- talk about a budgeting nightmare...).

I feel your pain.

it will teach you not to live paycheck to paycheck though, and to save for your bills. that rainy day fund is so so so important.

[justbroke]

If you're talking in the Chapter 13 context, then this is just how it is! I even have bonuses that pay in the second quarter and that can skew everything. But, I have to maintain a budget and learn to save in the months where income is lower versus months where income is higher. If you can't do that, then you will never survive a Chapter 13. You must be able to save.

For example, my electric bill was approaching $800/month in the summer while in my Chapter 13. (No, that's not a misttype... I'm in Florida and have a "big" house.) Yet, in the winter, my electric bill is around $250/month (if the temps are "normal"). I had to learn to save in the winter for my bills in the summer. My average bill, for purposes of determining DMI, was about $600/month. You can see the big difference in the winter and one could (probably) just spend the "extra" $350/month in the winter months. That would be a bad thing.

Even for people who are paid weekly, need to use a different calculation than just multiplying by 4. The weekly paid must multiply by 52 and then divide by 12 to come up with the "average" monthly income. I see no issues with this calculation since it gives an accurate reflection of the income.