How much should I put in my bills account each pay?
Updated 2026-10-15 · Australia
List every bill, convert each to a yearly cost, add them up and divide by your number of paydays — 26 if you're paid fortnightly, 52 weekly, 12 monthly. Transfer that exact amount into a separate bills account every payday. Quarterly power and yearly rego are then always covered.
Step by step
- List every bill: rent or mortgage, power, gas, water, phone, internet, insurance, private health, car rego, subscriptions, council rates, strata.
- Write how often each is paid and the amount.
- Convert to a yearly cost (weekly × 52, fortnightly × 26, monthly × 12, quarterly × 4).
- Add them up and divide by your paydays per year.
- Set up an automatic transfer for that amount on payday.
A worked example (fortnightly pay)
| Bill | How often | Yearly |
|---|---|---|
| Rent $1,050 | Fortnightly | $27,300 |
| Electricity $420 | Quarterly | $1,680 |
| Phone $89 | Monthly | $1,068 |
| Private health $182.40 | Monthly | $2,189 |
| Car insurance $1,400 | Yearly | $1,400 |
| Car rego $850 | Yearly | $850 |
| Total | $34,487 ÷ 26 = $1,326.42 per pay |
Starting from zero
If a big bill is due before your account has built up, pay that one from savings once, then let the per-pay transfers catch up. A small buffer (one extra pay's worth) stops overdraws when bills cluster.
Frequently asked questions
Do I really need a separate account?
It makes the system work: the bills money can't be spent by accident. Moneysmart suggests separate accounts for bills, spending and savings.
What about bills that change, like power?
Use last year's total, or the average of your last four bills, and review once a year.
Is there a calculator?
Yes — use our free bills-per-pay calculator, or the Bills tab in Sorted Budget which does it for every bill and shows what's due in the next 14 days.
Sources
Last checked 2026-10-15.