Splitting the Paycheck on Arrival: Transfer Fractions That Keep the Bills Account Solvent Between Paydays
Year: 2026
Type: article
Abstract: Money for bills and money for spending that share one account compete daily, and the bills usually lose on timing rather than on totals. This paper simulates a household paid USD 2150 every two weeks, with USD 1890 a month of fixed bills and variable weekly spending, under two arrangements: a single account, and an automatic split on payday that sends a fixed fraction of each paycheck to a separate bills account. The single account produces at least one failed payment in 5.5% of years despite income comfortably exceeding outgoings. The split needs to be at least the exact required fraction — bills over income, 40.6% — to work: at 44% it still fails in 100.0% of years, while at 48% failures fall to 100.0% of years and at 50% to 100.0%. The study is simulated, not measured. SIMULATED, NOT MEASURED.
Author: Aldred, William Alexander
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7225740401
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