Paid Biweekly? This tip is for you
Biweekly paychecks mean you get 26 of them a year; in other words, there will be two months in which you get three paychecks. These months are usually June and December, but sometimes July and January. In either case it’s pretty perfect.
Rather than treat these “extra” paychecks as found money and go crazy, treat them as earmarked items in your budget and set the whole amount aside for specific purposes.
For me, the extra paycheck in June/July funds any special summer plans I might have, say a vacation or a staycation“in which I don’t travel but work on a home project. This summer I did both: I redecorated my niece’s room in a blue and white ocean theme, lighthouses and all, and I also took Rob on a business trip with me to London. Both indulgences, taken together, fell well within the limit. The extra paycheck in December/January funds my Christmas purchases: tree, presents, holiday food, the lot.
The first trick to making this work, of course, is living within your means on two paychecks a month. It’s tempting to think “Oh, I’ve got an extra paycheck coming, so I can pay this bill later and buy those new shoes now.” Nope”cheating! We savvy queers who know our dollars and cents carefully ensure that our monthly budgets are calculated on two paychecks, so that we don’t have to break our budgets for summer vacations and holiday expenses.
The second trick is making sure the summer and winter holiday purchases don’t cost more than a single paycheck. This might mean skipping the 10-day cruise but it also means skipping the 10-year debt that would incur if you haven’t saved up for it, and can’t afford it with the single extra paycheck that month.
I have done this successfully six years in a row, and I swear, hand on heart, that not once have I rung up credit card debt I couldn’t pay off with the extra paycheck. I admit to supplementing here and there with frequent flier miles and a store gift card or two, but that’s not the same as ringing up debt I couldn’t afford.
I hope this works for you, and hang tight. The ads for Christmas and Hannukah have already begun!
good advice, though when I was paid bi-weekly, I was paid on Thursdays so my 2md month was usually November rather then Dec.
However, I know get paid weekly and can use the same advice. except I would have 4 extra checks.
My cheap company pays us twice a month….the 15th and 30th. UGH!
I use the summer ‘extra paycheck’ for additional principal on the mortgage and the Nov/Dec to help out with seasonal (and astronomical) heating bills to get thru the winter.
That’s good info, but what about those of us who are having trouble budgeting month to month….trying to pay bills and mortgage when my paycheck arrives at different times of the month.
I’ve seen bi-weekly mortgage plans, but they usually end up making an extra payment a year. I need that extra cash. Is there an option for someone who needs extra budgeting help with biweekly payments.