Budgeting FAQs
Quick answers to common questions about building a monthly budget and using the Monthly Budget Builder.
How do I convert my pay to a monthly amount?
Multiply each payment by how many times you're paid in a year, then divide by 12. Weekly pay times 52 divided by 12 is about 4.33 paychecks a month. Bi-weekly pay times 26 divided by 12 is about 2.17 paychecks a month. Semi-monthly pay is exactly 2 paychecks a month. Quarterly amounts divide by 3, and annual amounts divide by 12.
Should I budget with pre-tax or take-home pay?
Use take-home pay for your monthly budget, because it's the money that actually reaches your bank account. Pre-tax pay is still useful for the bigger picture, such as what share of your income goes to retirement savings. The Monthly Budget Builder asks for both and uses take-home pay to work out what's left to spend.
Why doesn't my 401(k) contribution reduce my leftover money?
Contributions taken directly from your paycheck, like most 401(k) and other workplace retirement plans, come out before your take-home pay. Since they never reach your bank account, they're already accounted for. In the calculator, check "Paycheck deduction" for these so they aren't subtracted twice.
What counts as a bill?
A bill is a recurring cost you're committed to, such as rent or mortgage, utilities, insurance, loan payments, phone and internet, child care, and subscriptions. Leave out food and drink, shopping and other flexible spending. Those come out of the money left over after bills.
Should I include bonuses or irregular income in my budget?
Many people budget only on income they can count on and treat bonuses, commissions or tips as extra. In the calculator, uncheck "Use for budgeting" next to any income source you'd rather not rely on, and it won't be counted in your results.
What should I do if my bills and savings are more than my income?
Start with your largest bills, since a change there makes the biggest difference. You can also look at whether any savings from your take-home pay should be paused for a while, or whether there's income you left out. A free coaching session can help you work through the options.
Is my information saved or shared?
No. The Monthly Budget Builder runs entirely in your web browser. Nothing you type is sent to us or stored, and it's cleared when you close or refresh the page.
Is the Monthly Budget Builder free? Who can use it?
Yes, it's completely free with no sign-up. It's currently available to people in the United States.
Where can I get free help with my budget?
You can sign up for a free session with Money Canvas for help with budgeting, reducing spending or saving more.