It is every budgeter’s dream come true…an extra paycheck! When you find yourself the recipient of such a windfall your first reaction might be excited…but then what? How would you budget an extra paycheck?
As someone focused on finances one of the first things you need to do is to determine the best way to utilize your “bonus” paycheck. An unexpected sum of money can make a HUGE difference in your financial goals as long as you choose to spend it wisely.
Why would you have an extra paycheck?
– Additional weeks: When you are paid weekly, any month with five weeks might result in an extra paycheck. If you are paid bi-weekly, there will be two months out of the year that you have an extra paycheck (26 weeks of pay).
Well, yes and no! If you are paid a salary, you might argue that an extra paycheck isn’t unexpected money at all. However, when most of us budget it is based on our take home pay…not our salary divided by 12 months.
The stars have aligned and you have an extra paycheck (or two!). You’re looking at your extra paycheck with a budgeting mindset and are ready to get one step closer to your big financial goals…here are some specific ways you can use your extra paycheck get ahead.