Here's how I make it work:
Some expenses are monthly, like rent or a cable bill. Other expenses are bi-weekly, like food or gas. Each month I split my fixed monthly expenses in half and make sure my 2 Paychecks cover those costs for the following month. Then when a third paycheck month rolls around, the portion of your paycheck that normally goes towards a monthly expense will be extra available money!
For example, heres a normal 2-paycheck month:
October happens to be a 3-paycheck month for me.
Payday is Oct 1, 15, and 29. Ill use the money from Paychecks 1 & 2 to cover typical costs for November. Then when the 29th rolls around rent, electricity, Internet and student loan bills will already be covered and I will only need money for a few biweekly expenses and I can save the rest.
In my case that frees up over $500 to save or pay student loans. Or blow on a vacation....just kidding!
I'll have a post soon about what my financial priorities are these days. But for now, I hope this strategy can be a useful budgeting tool!