If you’re paid biweekly there are two months in 2024 that you’ll get paid three times. But which months are they? It depends on the date of your first paycheck of the year.
Keep reading to find out when you’ll get three checks — and get advice on how to best spend them.
2024 Months With 2 Paychecks
Here’s a look at when your three-paycheck months will be, based on when you received your first paycheck of the year.
If you received your first paycheck of 2024 on January 5, you’ll receive three paychecks in March and August.
— March pay dates: March 1, 14 and 29.
— August pay dates: Aug. 2, 16 and 30.
If you received your first paycheck of 2024 on January 12, you’ll receive three paychecks in May and September.
— May pay dates: May 3, 17 and 31.
— November pay dates: Nov. 1, 15 and 29.
How Do You Budget For a 3-Paycheck Month?
When budgeting, a three-paycheck month means a higher level of income. If you normally make $4,000 per month, it could mean you’ll make $6,000. So, what should you do with the extra disposable income?
While a shopping spree can be tempting, consider how that money could improve your overall financial situation. If you aren’t sure where to start, Rizek Housari, a CPA and certified financial planner, recommends making the following moves a priority.
— Pay off high-interest debt.
— Work toward a fully funded emergency fund.
— Consider making retirement contributions.
— Plan for your future and your dependents (college, buying a home, etc.)
Let’s take a closer look at each of these options.
Pay Off High-Interest Debt
If you have high-interest debt, your outstanding balance is costing you money every month.
“If all the interest you’re gaining through sound financial moves is being eaten up by interest you’re being charged on debt, you’re at a loss,” says Michael Sparrow, a certified financial educator.
An extra paycheck presents a great opportunity to chip away at high-interest credit card bills and loan balances.
[Related:14 Easy Ways to Pay Off Debt]
Build an Emergency Fund
An emergency fund refers to a savings account that’s easily accessible in case of emergencies. Experts recommend that you stock it with enough money to cover three to six months of living expenses. It can come in handy if, for example, you lose your income source or need an expensive car repair.
Instead of borrowing and potentially taking on debt, you’ll have funds available.
[READ: Be Ready for the Unexpected With an Emergency Fund.]
Invest in Retirement Accounts
By using some of your extra paychecks to contribute to a retirement account like a Roth IRA or 401(k), you can have money working for your future self. And the earlier you start, the better.
If you qualify to contribute to a Roth IRA, you can deposit post-tax earnings and they’ll grow tax-free. You can also withdraw your contributions at any time without triggering taxes or penalties — and you can withdraw your earnings tax– and penalty-free after you turn 59 1/2.
Another tax-friendly retirement option is a 401(k). If you have one available through your employer, consider making an extra contribution to it. It might also be a good time to ensure you’re taking full advantage of any employer contribution match.
[READ: How Much Should You Contribute to a 401(k) in 2024?]
Consider Other Savings Goals
You can also use your extra paychecks to make progress on other savings goals. If, for example, you’re saving up for a down payment on a house, your child’s college education or even an upcoming vacation, the money could help you reach your goal faster.
Planning for Your Extra Paycheck
You probably won’t be able to achieve all of the above goals with two extra paychecks in a year, but the extra money can help you jump a few steps ahead.
Desiree Kaul, a Florida-based certified financial planner, recommends a balanced approach. “Divide the amount into three equal portions: savings, debt payoff and fun money,” she says.
She advises building up your savings or emergency fund and making an extra payment toward your debt’s principal balance.
“In cases when you don’t have any debt, you can use that portion towards the savings and fun categories. Then, if you’ve contributed to the other two categories, you should also treat yourself,” she says.
More from U.S. News
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If You’re Paid Biweekly, Discover the 2 Months in 2024 You’ll Be Paid 3 Times — and Learn How to Plan For It originally appeared on usnews.com
Update 04/29/24: This story was published at an earlier date and has been updated with new information.
