If you are getting paid on a weekly basis, there are going to be four months every year that you will get paid five times instead of four.
While looking through a calendar of 2021 to plan this article, I noticed something very interesting!
2021 has 53 Fridays, not 52 like normal years.
The first Friday of the year, January 1st, 2021 is a bank holiday. That means that the majority of employers will process their payroll the day before, Thursday, December 31st, 2020. What that boils down to is that January will not be a five paycheck month for everyone. This leads to the reason you’re reading this article:
The months with five Fridays in 2021 are April, July, October, and December.
If you are only using four paychecks a month to set up a monthly budget, the “bonus paychecks” will help you on your personal finance journey.
What I am saying is:
If you are budgeting against four paychecks a month times 12 months equals 48 paychecks every year. However, we know that there are 52 weeks in a year. That would mean you could have an “bonus” four paychecks every year!
You should treat that money as a bonus. You can do whatever you would like with it, but here are some good ideas to help you out:
Five paycheck months provide you with many opportunities to improve your financial position. You can make your feature more secure, take care of a large expense, or pay off some outstanding debt.
No matter how you plan on using those fifth checks make sure to be intentional with your money. You won’t regret it!