If you get paid weekly, there are four months out of the year when you’ll receive five paychecks instead of four.
I pulled out a 2020 calendar to determine the months with five paychecks for people who are paid every Friday. The five-paycheck months for 2020 are:
Important note: In addition to those four months, it’s possible that December will be a five-paycheck month in 2020 for workers paid on Fridays. That’s because January 1, 2021 — a bank holiday — is on a Friday. Many employers will process payroll a day earlier on Thursday, December 31, 2020. To be sure, check with your company’s HR department.
Not paid on Friday? Use the calendar below to identify the months when you’ll have five weekly paydays.
If you only use four weeks of pay to set your monthly budget, these “extra paychecks” can help you get ahead financially.
Take a look at it this way…
If you build a monthly budget based on four weekly paychecks and nothing else, that’s a total of 48 checks per year.
But since there are 52 weeks in a year, that leaves four paychecks!
My suggestion is that you treat your extra paychecks as bonus money! Use them to pay off credit card debt, save for a down payment on a new car or work toward building an emergency fund.
Although I don’t get paid weekly myself, I have used this budgeting tip when I was paid biweekly instead of twice a month — it really works!
The key is to make a plan for your extra paychecks ahead of time so that they go toward your money goals and aren’t wasted.
Don’t know what to do with your fifth paycheck? Here are some ideas:
- Get out of debt faster (credit cards, student loans, etc.)
- Save for a down payment on a home
- Build your rainy day or emergency fund
- Take a mini-vacation
- Pay for Christmas or birthday presents
- Put it toward a 6-month auto insurance premium
- Save up for a new car (or a used one!)
- Donate some of it to charity
- Contribute to a Roth IRA
- Save for your child’s college education
I want to know your plan for your months with five paychecks in 2020. Leave a comment below and tell me how you’re saving!
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