How much should I put aside for bills each payday?
Add up what your bills really cost over time, convert them to your pay cycle, and keep that amount aside before deciding what is safe to spend.
The short answer
There is no single percentage that works for everyone. The useful number is the amount your own bills require from each payday.
A simple example
Suppose you are paid $1,800 a fortnight and you have these bills:
- $520 rent each week → $1,040 each fortnight
- $120 phone and internet each month → about $55.38 each fortnight
- $360 electricity each quarter → about $55.38 each fortnight
- $910 car registration and insurance across the year → $35 each fortnight
Those bills need about $1,185.76 from each fortnightly pay. That does not mean the whole remainder is spending money — groceries, fuel, savings and other weekly needs still need to be allowed for.
Why annual bills still belong in this payday
An annual bill may be months away, but it still has a cost per pay. Putting aside a smaller amount regularly can stop the whole bill landing on one payday.
What if I do not know every amount yet?
Start with the numbers you know. An approximate figure is more useful than waiting for a perfect budget that never gets started. Then check your statements and bills and firm the numbers up as you go.
What should be included?
Include housing, utilities, phone and internet, insurance, transport, loan repayments, subscriptions and irregular bills that you know will return. Then separately allow for everyday needs such as groceries, fuel, medical costs and personal spending.
What happens after I set the bills aside?
Once this payday’s bill set-asides and weekly needs are protected, you can see what is genuinely left. Money with Moana calls that Safe to Spend.
Common questions
Should I use a percentage of my pay for bills?
A percentage can be a rough benchmark, but it cannot know your rent, insurance, family costs or due dates. Calculating from your actual bills gives you a figure that belongs to your life.
How do I calculate monthly bills if I am paid fortnightly?
Multiply the monthly bill by 12, then divide by 26. For example, $100 a month is about $46.15 per fortnight.
How do I calculate annual bills if I am paid weekly?
Divide the annual amount by 52. A $1,040 annual bill is $20 a week.
What if a recurring bill has just been paid?
If it will come back, it still belongs in the plan. Start setting aside for the next occurrence rather than treating the bill as finished.
Educational money tools and information. Not personalised financial advice.