Have an Extra Paycheck? This Is How You Can Budget For It

PennyGem’s Elizabeth Keatinge tells us how to budget for three paycheck months.

Transcript

00:00W-2 employees have some months where they get not two paychecks, but three.

00:08They're exciting, and you can really use them to your advantage.

00:11Credit.org suggests using the extra check to grow your emergency fund.

00:16If the pandemic taught us anything, it's that we should expect the unexpected.

00:20You should have nine months of income saved in an emergency fund.

00:24Grow by Acorns suggests scheduling an extra mortgage payment.

00:28This can help you pay off the debt faster and pay less overall interest.

00:32Credit.org suggests you could also make an additional car payment.

00:36Invest for your future by putting the extra check towards a Roth IRA,

00:40mutual fund, or 401k retirement account.

00:43Self-care is also a valid form of spending extra funds, if you've budgeted for it.

00:49Maybe you need a weekend away to clear your head and come back even stronger.