Several times a year I end up getting five paydays during a month instead of four. These are always good times; I have my finances budgeted for four paydays a month so the fifth is like getting extra cash.
When these months roll around my co-workers are always excited. They regale me with the ways that they plan to spend the extra cash. Some pay bills, some use the opportunity to reduce their debt, while others simply blow the cash.
I save half of it.
Every time that bonus payday rolls around I send half of the money to an online savings account. That allows me to build up my savings while also giving me a little money to splurge with.
We should all do that with the little windfalls in life. A large income tax refund, a bonus from work, or even those extra paychecks we get throughout the year can be set aside to build savings. Doing this allows us to painlessly save up for a rainy day or a large investment like a home or a vehicle.
This month just happens to be one of those months when I get an extra payday. I’m not only looking forward to having my savings account balance increase, I’m also looking forward to splurging on something special.
How do you handle extra paydays? Please share your stories in the comments below.