For reconciling biweekly paychecks with monthly expenses and budgeting.
- mortgage payment: fund a month ahead. By 1st of the month it should be funded. This month’s money goes to next month’s payment.
- If next month’s payment is already funded, don’t need to fund mortgage until next check. Save some.
- monthly recurring (e.g. bills): fund half a month ahead. By start of month, half the payment should be funded. Halfway through the month, should be fully funded.
- monthly goals (e.g. saving toward property tax): as monthly recurring.
- non-recurring (e.g. food): fund 2 weeks out, split across months.
- Take target for the month (e.g. monthly average), divide by 30 ~= 3.3% per day. Allocate to days left in current month, then days next month up until next check.
- 14/30 = 0.47 ≈ 0.5
- buffers (e.g. medical, vacation): fund in current month as available.