March can inspire workers who receive biweekly paychecks because it can be a three paycheck month.
This happens when you get paid every two weeks, with three pay periods in a month instead of the usual two.
A three paycheck month can happen a few times a year, depending on your pay schedule. It can be an opportunity to make some financial progress.
March is a Three Paycheck Month: How Did It Happen?
For individuals who are W-2 employees and receive payments every two weeks, CNBC said there are two specific months annually in which they will receive more paychecks under the three paycheck month instead of the typical two.
In case your initial paycheck for 2023 was issued on Friday, January 6th, then you will receive three paychecks in March and September. However, if your first paycheck was released on Friday, January 13th, then you will receive three paychecks in June and December.
Credit.org said there are two months with five weeks each year. This might result in three payments rather than the typical two for people paid every other week or every two weeks.
How? There are 52 weeks in a year. There are 26 pay periods in a year if you receive payment every two weeks.
Yet, a month often only has four complete weeks. You miss out on two paychecks if you divide those four weeks by the number of months in a year.
You can receive a few additional paychecks to make up for the months having more than four weeks. According to the calculations, you may anticipate receiving three paychecks every two months of the year.
If you are paid every two weeks, hearing that you’ll get a bonus check twice a year might be thrilling. What months, nevertheless, have five weeks?
Depending on the day you get your pay, these months may change. Employees who are paid on Fridays do not share the same three paycheck month cycles as those who are paid on Wednesdays. Check your employer’s biweekly pay period schedule to see which month you will get a bonus or if you’re eligible for a triple paycheck month program.
How to Make The Most On Your Extra Paycheck
It might be tempting to waste away an additional income as the three paycheck month is incoming. Yet you should think about using that cash to assist you balance your own budget. Here are five ideas for making the most of the three paycheck month program as shared by Acorns:
- Review Your Budget: First, look at your budget and see where that extra paycheck can make the most impact. Maybe there are some bills you’ve been struggling to pay, or perhaps there’s a savings goal you’ve been working toward. Use this opportunity to prioritize your spending and ensure you’re putting that extra money to good use.
- Build Up Your Emergency Fund: If you don’t already have an emergency fund, consider using that extra paycheck to start one. Experts recommend having three to six months’ worth of living expenses saved in case of a financial emergency. Even if you already have an emergency fund, it’s always a good idea to add to it.
- Pay Down Debt: If you have any outstanding debt, consider using that extra paycheck to pay it down. High-interest credit card debt can be particularly burdensome, so if you have any of that, try to pay off as much as you can. You’ll save money in the long run by avoiding interest charges.
- Invest in Your Retirement: Now is a great time to start if you haven’t contributed to your retirement accounts. Consider using that extra paycheck to contribute to your 401(k) or IRA. If you’re already contributing, you may want to increase your contribution rate.
- Treat Yourself (a Little): While using that extra paycheck wisely is necessary, it’s also okay to treat yourself a little bit. There may be a small splurge you’ve been eyeing, like a fancy dinner or a new piece of tech. Just make sure that you’re still prioritizing your financial goals before indulging in any non-essential purchases.
In conclusion, a three paycheck month can be a great opportunity to make some financial progress. Take the time to review your budget, prioritize your spending, and make sure you’re putting that extra money to good use. By making smart financial choices, you can make the most of that bonus paycheck and set yourself up for a more secure financial future.