If you get paid biweekly, twice a year you'll get three paychecks in a single month instead of two. Find out when those three paycheck months occur in 2020 and what to do with that third paycheck as well as the monthly budget trick that will help you maximize that extra check.
What would you do if two extra paychecks fell out of the sky every year?
Paychecks don’t really fall out of the sky of course, but you can sort of make that happen if you get paid biweekly. With biweekly pay periods, twice a year you’ll get three paychecks in a single month instead of two. Here’s how it works:
If you get paid semimonthly, on the 15th and 30th of every month for example, that’s twenty-four paychecks a year.
If you get paid biweekly, say every other Friday, that works out to twenty-six checks a year.
Getting twenty-six paychecks per year means there will be two months each year where you receive three paychecks instead of two.
So which months are the three paycheck months in 2020? That depends on when you received your first check this year.
I get paid every other Friday. I got my first paycheck of the year on January 3rd. So for me and anyone who gets paid biweekly and got their first check January 3, our three paycheck months are January and July:
If you get paid biweekly and you got your first check of 2020 on January 10, your three paycheck months are May and October:
If you get paid every other week, but not on Fridays, you can see from the pictures above it’s pretty easy to figure out your three check months. Grab a calendar and a pen then start circling starting with the day you got your first paycheck in 2020. That’s all there is to it!
Extra paychecks don’t really fall out of the sky, unfortunately. But here’s a simple monthly budgeting technique that will make that third check feel like a windfall: create your monthly budget based on your usual two paychecks a month.
If you do that, all your expenses for the month will be covered since you budgeted for them based on a normal, two paycheck month. When that third paycheck arrives, you’ll find yourself with extra cash.
Treat that money like a bonus. You can do whatever you want with it, but here are some ideas to get you started:
Three paycheck months offer you many options to better your financial situation. You can pay off debt, take care of a major expense, or make your future a little more secure.
Taking a trip or buying a new outfit with a portion of the extra check won’t wreck your budget. That third check is a good opportunity. Be intentional with your money no matter how you decide to use it.
Hi I'm Sara! My husband Jerry and I are on a mission to earn more, spend less, get out of debt, retire early, and enjoy life to the fullest. We want to help you do the same. Learn more →