Why 4-weekly pay is different
A year has 52 weeks. If you're paid every 4 weeks, that's 13 paydays a year, not 12. But your rent, council tax and phone bill still come out monthly. So most months you get one payday, and once a year (sometimes twice) a month has two.
That extra payday is easy to lose in everyday spending. If you plan for it, it can clear a debt, top up savings or pay for Christmas.
How to budget on 4-weekly pay
- Add up your monthly costs. Bills plus normal spending, for a typical month.
- Turn them into a 4-weekly figure. Multiply by 12, then divide by 13. The calculator does this for you, as "budget your monthly costs per payday".
- Set aside that amount every payday. Because each payday covers a bit less than a month, you build a small buffer each time.
- Give the extra payday a job before it arrives, such as savings, debt or a sinking fund for big yearly costs.
An example
Say you take home £1,600 every 4 weeks and your monthly costs are £1,450. That's £20,800 a year, or about £1,733 a month on average. Your costs work out at about £1,338 per payday, leaving about £262 each payday. In your two-payday month, the whole extra £1,600 is free to save or pay off debt.
Watch out for these
- Bills due before payday. When payday moves through the month, a bill can land before your money does. Move direct debit dates, or keep a small buffer.
- Weekends and bank holidays. Your payday may move a day or two, especially at Christmas.
- Universal Credit. Universal Credit uses monthly assessment periods. If two paydays fall in one assessment period, your payment for that period may be lower. Check your journal, or see Universal Credit on GOV.UK.