How do you budget for 3 pay checks in one month?

AprilZ81 · June 2015

Before I lost my job back in March we took our total take home and divided it evenly throughout the year. When a month with 3 pay periods arrived we didn't do anything extra because that money was rolled up into our regular budget. With this method I noticed that some months seemed "lean" and I couldn't figure out why until I sat down and did the math (sometimes I can be a little dense when it comes to math).

Since I've been out of work we have switched to budgeting only for 2 pay checks each month and then we decide on our own what we want to do with the extra pay checks when they arrive. This month it went to a new tv.

Now that I'm getting ready to go back to work I'm curious what you guys do for this situation and which you like better. Part of me likes the "windfall" of the extra money a few times a year, but having it spread out allows us to work on more goals each month.

We have enough cushion in our checking account that either method won't be an issue. If we budget for it throughout the year we end up with an extra $542 (conservatively, still depends on exactly what my new take home pay ends up being) a month which will be very helpful.

hoffse · June 2015

We use it toward our Roths. I get two "bonus" paychecks a year, and they pretty much take care of one of our Roths without having to save anything extra.

simplyelise · June 2015

H gets paid twice a month. I get paid every other week. I like to budget on just 2 a month (each).

We mostly use the third paycheck in May/October for extra debt payment, but we also work some bigger goals in. I like to use the October one to set aside all our Christmas present money. I really do like the feel of the "windfall" and it helps us to learn how to live on the lesser amount each month. But it'd only be an extra $200ish a month for us if we spread it out, so that wouldn't have the same feel of accomplishment for me!

KAdams767 · June 2015

We each have 2 3-paycheck months and they aren't the same ones since we are on opposite bi-weekly pay schedules. We tend to to use them as our annual vacation money, and the schedule usually works out pretty well to over most, if not all, of our travel plans.

als1982 · June 2015

We just got ours and spent it to pay off the rest of our May vacation and then put the remainder on H's student loan.

Mustard76 · June 2015

My company just switched to bi-weekly pay from bi-monthly pay in January. I haven't had a 3 paycheck month yet, but it never really crossed my mind in terms of budgeting.ive gotten paid bi-monthly for the last 9 years, so I've just gotten used to budgeting monthly expenses with nothing "extra."

abrewer5 · June 2015

I will usually put them towards savings/loan payments. The last one I got I put towards paying off my car, the next one (October) I'll likely put towards my school loan or just leave in our joint checking as a cushion. My H gets on in July that he'll probably use towards boat gas or paying off the small balance on his credit card.

Xstatic3333 · June 2015

We both get them during different months each year. During bonus month I'll pay most of the bills on the first check and then use the second for goals. I get mine Tuesday, and it will be going to a mixture of savings and retirement, annual expenses (my liability insurance) and a small amount of spending money for an upcoming long weekend. H's is in August and we'll probably save most of it unless something comes up between now and then.

jessica490 · June 2015

We just treat it as a normal check. We pay bills that are due before the next paycheck and stash the rest in savings.

cbee817 · June 2015

We treat it as a normal paycheck too- for May, I got 3 paychecks with the last one on the 29th, but I needed the $ for the mortgage payment on the 1st and other beginning of the month expenses. Maybe one day we'll get to where it's bonus $, but for now, it's just folded into the cycle of deposits and withdrawls.

brij2006 · June 2015

We put it toward debt.

blondie42107 · June 2015

H is paid 2x monthly and I'm paid every other week. The two months that I get three paychecks, we consider them bonuses. Last month we paid our six month auto insurance premium in full, put extra on a loan and extra in savings.

formerlyGDaisy09 · June 2015

I'm paid monthly and H is paid weekly. we often don't notice the months when H gets paid 5 times, since we budget based on the equation: (annual salary after benefits and taxes/52)*4.333

Things might start feeling a little lean when it's been 4-5 months with only 4 paydays.

short+sassy · June 2015

My primary job pays bi-monthly. But my part-time job pays every other Friday, so I have two months out of the year with an extra "Friday" payment.

I completely base my budget, bills, and loan pay down on the "normal" months. The months with an extra Friday are just "bonus" money that I usually apply to a credit card balance.

I also like it when my f/t paycheck and p/t paycheck are on opposite weeks....which happens for half the year between the "bonus" Fridays. It doesn't really make a difference for my bills, it's just more psychological of getting some money every week.

alexnicole452647 · June 2015

We put any extra money into our savings for home improvements and our baby fund. I also have increased my 401k so when we do have a baby if we need to cut it down the money wont be missed because it already was saved (this also lowers your taxable income).

mana8503 · June 2015

I always budget for the minimum. I'm bi weekly, and it always goes towards debt. H is weekly, and his seem to fall when we travel/get his kids. We get an extra pay this month, which will pay for our plane tickets to get the kids in July. Extra pay in July will go towards our vacation with the kids, October for Christmas, etc.

MommyLiberty5013 · June 2015

DH gets a profit sharing check each year. We don't budget for it. We typically use it for paying down the mortgage and charity.

Erikan73 · June 2015

We use it to help pay down debts.

dragonstarjk · June 2015

I typically consider it as an 'extra' paycheck, but for the last few years it has always fallen in the same two months as my car insurance payment. So, it usually goes to pay car insurance and then I don't have to budget for that.

CuriousKiddosMama · June 2015

I love 3 paycheck months! I think July is one for dh. Generally we save it, this time around it will probably be put towards either the mortgage or the baby fund.

How do you budget for 3 pay checks in one month?

Re: How do you budget for 3 pay checks in one month?

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