📅 Chapter 3

Pay Periods Explained

Master pay period-based budgeting

📋 On This Page

What is a Pay Period?

A pay period is the recurring length of time for which you receive a paycheck. Instead of thinking about your budget in calendar months, BudgetPro organizes your finances around when you actually get paid.

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Real-World Example

If you get paid every other Friday, your pay period might be:

  • Period 1: November 8 - November 21 (payday: Nov 8)
  • Period 2: November 22 - December 5 (payday: Nov 22)
  • Period 3: December 6 - December 19 (payday: Dec 6)

Each period is 14 days, and you plan your spending within each 14-day window.

Why Budget by Pay Period?

Traditional monthly budgeting has a big problem: your bills don't care about calendar months.

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The Monthly Budget Problem
Why calendar months don't work for most people

Imagine you get paid bi-weekly and your monthly take-home is roughly $4,000. You budget $4,000 for the month. But here's what actually happens:

  • Rent ($1,200) is due on the 1st
  • First paycheck ($2,000) comes on the 8th
  • Car payment ($350) is due on the 15th
  • Second paycheck ($2,000) comes on the 22nd
  • Bills totaling $800 are scattered throughout

Between the 1st and the 8th, you need to cover rent but haven't been paid yet! Monthly budgeting hides these timing mismatches.

Pay Period Budgeting Solves This

With pay period budgeting, you ask: "With this paycheck, what bills do I need to cover before my next paycheck?"

Benefits include:

  • Timing clarity — You see exactly which paycheck covers which bills
  • Realistic daily budgets — Your spending limit is based on actual available money
  • No surprises — You can look ahead and see if a future period will be tight
  • Works for any schedule — Weekly, bi-weekly, semi-monthly, or custom

Pay Period Interval Types

BudgetPro supports all common pay schedules. Choose the one that matches how you get paid:

Weekly

7 days per period • 52 paychecks per year

Best for: Hourly workers, some contractors, restaurant/retail employees

Example: Get paid every Friday → Period runs Friday to Thursday

Bi-Weekly

14 days per period • 26 paychecks per year

Best for: Most salaried employees, many hourly workers

Example: Get paid every other Friday → Period runs for 2 weeks

Note: Twice a year, you'll have a month with 3 paychecks!

Semi-Monthly

Twice per month • 24 paychecks per year

Best for: Some salaried employees, teachers, government workers

Example: Get paid on the 1st and 15th → Two periods per month

Periods vary in length (13-16 days)

Monthly

Once per month • 12 paychecks per year

Best for: Some contractors, landlords, retirees

Example: Get paid on the 1st → Period runs entire calendar month

Custom

You choose the number of days

Best for: Irregular schedules, project-based pay, unique situations

Example: Set to 10 days if you operate on a 10-day cycle

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Bi-Weekly vs Semi-Monthly

These sound similar but are different:

  • Bi-weekly: Every 2 weeks (14 days), same day of week
  • Semi-monthly: Twice per month on specific dates (like 1st and 15th)

Bi-weekly results in 26 paychecks/year, semi-monthly gives you 24.

Setting Up Your Pay Period

Follow these steps to configure your pay period:

  1. Open Settings
    Click the gear icon ⚙️ in the top right corner of your dashboard to open the Settings panel.
  2. Find the Pay Period Section
    Scroll to the "Pay Period" section. You'll see options for Interval Type, Start Date, and (if applicable) Custom Days.
  3. Select Your Interval Type
    Click on the option that matches how often you get paid: Weekly, Bi-weekly, Semi-monthly, Monthly, or Custom.
  4. Set Your Start Date

    This is the anchor date BudgetPro uses to calculate all pay periods. Choose a recent payday:

    • Weekly/Bi-weekly: Select your most recent payday
    • Semi-monthly: Select either the 1st or 15th (or your actual pay dates)
    • Monthly: Select the 1st of the current month
  5. Save Settings
    Click "Save Settings" to apply your changes. The dashboard will update to show your current pay period.
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Choosing the Right Start Date

The start date doesn't have to be your very first payday ever. It's an anchor point. BudgetPro calculates forwards and backwards from this date to determine all pay periods.

Best practice: Use your most recent payday so the current pay period aligns with your actual paycheck timing.

Navigating Between Pay Periods

Once your pay period is configured, you can easily move between periods:

Current Period

By default, BudgetPro shows the pay period that contains today's date. This is your "active" budget view.

Looking Ahead

Click Next ▶ to see future pay periods. This helps you:

  • Plan for upcoming large expenses
  • See if a future period will be tight
  • Decide whether to delay discretionary spending
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Planning Ahead Example
Using future period view

You want to buy a $500 TV. Looking at your current period, you have $200 in Safe to Spend. You click "Next" and see that the next period also looks tight with $150 Safe to Spend. But the period after that shows $800 Safe to Spend because you have fewer bills that period.

Decision: Wait two pay periods to make the purchase without straining your budget.

Looking Back

Click ◀ Previous to review past pay periods. This helps you:

  • See spending patterns
  • Verify bills were paid
  • Learn from previous periods

Special Situations

Three-Paycheck Months (Bi-Weekly)

If you're paid bi-weekly, twice a year you'll have a month with three paychecks instead of two. These are great opportunities to:

  • Build your emergency fund
  • Pay down debt
  • Save for large purchases

BudgetPro handles this automatically—you'll just see three pay periods fall within the same calendar month.

Irregular Income

If your income varies (freelancer, gig worker, commission-based), you can:

  • Use a Custom pay period based on your typical project cycle
  • Add income entries with your best estimates, updating amounts when you know them
  • Set a higher minimum balance reserve to buffer for lean periods

Multiple Income Sources

If you have income from multiple sources (job + side gig, household with two incomes), add each as a separate income entry. They'll all be factored into your pay period calculations.

Changing Jobs or Pay Schedules

If your pay schedule changes:

  1. Go to Settings ⚙️
  2. Update your Interval Type to match your new schedule
  3. Set the Start Date to your first payday under the new schedule
  4. Update your income entries with the new amounts and dates
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When Switching Pay Periods

If you change from bi-weekly to monthly (or vice versa), you may need to review your bills and income to make sure they're assigned to the correct dates. Some items may need their due dates adjusted.