Your Budget – The Next Step

Have you created your monthly budget?  Are you still short just before pay day?

Here is the next step for your budget.  It is time to create your pay cheque planner.  Planning your expenses by pay cheque, instead of by the month, allows for a more successful and workable budget.

Begin by listing the net pay-cheque amount for each person in the household. Remember to include other sources of income such as Child Tax Benefit and Universal Child Care Benefit.

Next, list the expenses that are payable at a specific time and assign them to a pay that occurs before the expenses becomes due.  Depending on your income level, you may need to split some of these monthly expenses between your pay-cheques.  For instance, if your rent is $1,000, you could put aside $500 each biweekly pay for rent.

Now, list expenses that are payable throughout the month, such as food, dining out, etc.  Divide these expenses evenly between the pay-cheques.  If you are spending $400 per month in groceries and you are paid biweekly then put $200 under each pay-cheque column.   If you are paid weekly, assign $100 per pay for food.

Finally, list the remaining expenses into the plan.  These are items that do not have to be paid at a specific time and can be assigned to the pay that has room.  Some examples are investments, savings, and clothing expenses.

Tracy, Pay #1 $1,000 Tracy, Pay #2 $1,000
Rent $800 per month $800 $0
Food $ 250 per month 125 125
Lunches $40 per month 20 20
Internet/cable/phone $125 125
Sports / Gym 70
Bus Pass $95 95
RRSP $200 220
Entertainment $100 50 50
Splurge money $20 5 15
Clothing $100 100
Emergency fund / TFSA $100 100
Gifts / Donations $80


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Baker Tilly Ottawa Ltd.