Weekly pay monthly bills?!?

keepplodding

Hey all having a little troubble bugeting?
I will try and explain my confusion as best i can, so for the sake of this lets say i take home £250pw
-payment1- i have a monthly payment of £350 to be paid on the 25th of each month by SO
-payment 2- a weekly payment of £30 by SO every friday

So how much would i put away each week?
Because i would imagine £30 each week for payment 2.
£87.50 each week for payment 1.

I was told this is incorrect though i should do;
£350×12÷52=£80.70 (to put away each week)

But that would mean when the standing order is due on 25th i would only have £322.80???

Help im crap with maths! I understand some months have more days than others but if this 'correct' calculation so im told, leaves less money than i need after paying for 4 weeks before the 25th than that cant be correct!

Thanks all

eskbanker

They're both right answers in a way - the lower figure is the long-term average that works out over a year but the higher figure is the one you'd need to use if you're making a monthly payment after more than 4 weeks but less than 5 weeks. Budget with the higher figure, and once you've built up a bit of a surplus, you can go with the lower one.

HappyMJ

keepplodding wrote: »

Hey all having a little troubble bugeting?
I will try and explain my confusion as best i can, so for the sake of this lets say i take home £250pw
-payment1- i have a monthly payment of £350 to be paid on the 25th of each month by SO
-payment 2- a weekly payment of £30 by SO every friday

So how much would i put away each week?
Because i would imagine £30 each week for payment 2.
£87.50 each week for payment 1.

I was told this is incorrect though i should do;
£350×12÷52=£80.70 (to put away each week)

But that would mean when the standing order is due on 25th i would only have £322.80???

Help im crap with maths! I understand some months have more days than others but if this 'correct' calculation so im told, leaves less money than i need after paying for 4 weeks before the 25th than that cant be correct!

Thanks all

Well....£80.70 is correct....but you need to put an extra £80.70 in to the pot in the first week so you have 5 weeks of contributions in the pot and the first months payment will succeed. It'll work after the first payment just fine.

I would do as you've said and budget for 1/4 of the monthly payment each week...i.e £87.50 and then after a year you can use the additional money that you've saved for extra expenses such as Christmas. After a year you will have saved £87.50 * 52 = £4,550 but spent £350 * 12 = £4,200. You will have an extra months payment of £350 saved.

keepplodding

Thanks guys that makes sense. The figures i have mean it is only about £25 is a week more so as you say if i set up a SO for the higher ammount and after a year have a nice little bit of savings in the bills account. I would rather go with the higher figure.
Thankyou both! Much appriciated

cheesetoast

keepplodding wrote: »

for the sake of this lets say i take home £250pw
-payment1- i have a monthly payment of £350 to be paid on the 25th of each month by SO
-payment 2- a weekly payment of £30 by SO every friday

So how much would i put away each week?

So as to err on the safe side, lets assume (wrongly) that there are exactly four weeks in every month.

You need £30 away for payment 2 - that's easy. You put away £30 a week from the £250.

You've got £220 left.

From that, you need to put away four payments of £350 divided by 4 for payment 1, which is £87.50.

Add that to the £30, and you're putting away £117.50 a week. That leaves you £122.50 a week spare, and a little buffer because you'll be over-saving by a smidge for payment 1.

diamonds

cheesetoast wrote: »

So as to err on the safe side, lets assume (wrongly) that there are exactly four weeks in every month.

You need £30 away for payment 2 - that's easy. You put away £30 a week from the £250.

You've got £220 left.

From that, you need to put away four payments of £350 divided by 4 for payment 1, which is £87.50.

Add that to the £30, and you're putting away £117.50 a week. That leaves you £122.50 a week spare, and a little buffer because you'll be over-saving by a smidge for payment 1.

Add a weekly amount of £10 to bank in a 5/6% in a regular monthly saver