Every once in a while, a little extra money rains down from the sky and into the pot of gold on your front lawn. 💰 OK wait, maybe that was our fever dream as we were fighting off the Norovirus. 🤢 If you need us, we’ll be on the golden throne.
Here, we’re diving into three paycheck months: when they are and how to make the most of them. 💵 Because anything extra is always a treat!
Here’s Five Fast Facts on how to maximize a three paycheck month:
- 🗓️ Calendar Check - Paid biweekly? You’ll get a third paycheck in two months of the year! The months you get it will depend on when you got your first paycheck of 2025. If you got your first check on January 3rd, you’ll get a third paycheck in January and October. If you got paid first on January 10th, your third paycheck months are May and October.
- 💳 Debty Downer - Got extra debt weighing you down? Fight back those high interest rates and use the extra check to pay off credit card balances. You could also make an extra payment on your student loans or mortgage. Paying loans off early can save you a ton in interest.
- 🔮 The Future You Fund - If you have a retirement savings account, consider putting your third paycheck towards your future. For 2025, the IRS contribution limit for 401(k) plans is $23,500 if you’re under 50. That’s up $500 from 2024. Additionally, the IRS rolled out new limits for those over 50: 50-59 $31,000, 60-63 $34,750, 63 and up $31,000.
- 🚨 Hello, 911? - Did you know only 44% of American adults can cover an emergency expense of $1,000 or more? If you’re in that crew, use your third paycheck to finally start that emergency fund. Consider stashing it away in a high yield savings account where you earn some extra coin from the interest.
- 💫 Goal Getter - Whether you’re saving for a new home or saving for a family trip to Disney, that third paycheck could help you get to your goal sooner. PS - if your finances are in perfect shape, don’t be afraid to have a little fun! Splurge on something nice. You work hard for the money, honey.
🔥Bottom line: We all know that early birds catch the worm. While you’re in a responsible mood, after you do something good with your extra paycheck, why not do your taxes? Getting them off your plate early means less stress and possibly a better refund. Check out our article on that here!
Is January a three paycheck month for you?
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