Quick learning: The extra paycheck
About this video
If you are paid every other week, most months have two paychecks, but twice a year a month has three. The video suggests planning ahead for these extra paychecks and using them to build an emergency fund, pay off debt, get ahead on bills or save for something big.
You'll be able to
- explain why biweekly pay gives some months three paychecks.
- plan how to use an extra paycheck wisely.
Key words
- Every other week (biweekly)
- Being paid once every two weeks.
- Emergency fund
- Savings kept for unexpected costs.
Transcript
- Did you know you might have two bonus paycheck months this year and not even realize it? If you get paid every other week, most months, you'll have two paychecks, but twice, a year the calendar gives you three. Let's say your paydays fall on the 3rd, the 17th, and the 31st.
That third paycheck can feel like found money, but only if you plan for it before it hits your account. You could use it to build your emergency fund, pay off your credit card, or get ahead on your bills, or save for something big. And here is the best part: this happens twice a year.
Instead of wondering where did that money go, decide where you want it to go. So here's what you do: check your pay calendar and find those three-payment months. Your future self is going to be very happy that you did.
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