Tuesday, October 15, 2013

How to get 2 Extra Paychecks a Year!

For those of you who are paid bi-weekly, twice a year you'll get a 3-paycheck month. Now, I know everyone budgets differently, there are nearly endless options. But if you're anything like me, you can always use a little built-savings plan or an extra boost to your income.

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! 

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