Free money every month.

[y26]

I thought i might share this with some of you since it works for me. Not sure if it is a repost. I get paid bi-weekly (twice monthly). All my month bills are paid on getting paid twice every month.

Well about twice a year for me i get that third check in one month (because of the way the weeks work). that pretty much for the exception of grocery and spending money allows me to bank all of it. Since the following month my cycles continues with 2 pay checks.

Make sense??

I guess it is better for people who get paid weekly because i think 5 weeks in a month happen like 4x a year.

Overall this allows me to apply extra payment to things or build up the reserve.

hope this helps

[sweeps]

It's not really free money of course, just a mind trick. But whatever works.

[cantretire]

it happens twice a year. doesn't really help me though - but I planned better this year so maybe i'll get it right this time. I'll check what months it happens in 2008 and post it here.

[FrugalFish]

I do that too. Our bills are roughly in 3 categories that get paid twice a month, so as soon as I can skip a paycheck and still make the dates on the final set of bills, that money goes directly into savings. I figure out when this will be about 2 months in advance and write on the calendar to save that paycheck as soon as it comes in. December 1 is our next "extra" paycheck

[dotcom]

I didn't even realize that, lol. thanks!

[davlat]

I don't think you can gain money that way. Even if we can figure out, the biz guys will definitely do (way before us). There will be something that prevent them (biz guys) from losing extra money..

Anyway you can gain for interest by depositing your early pay check into savings.

[simpleyme]

we had a"extra paycheck" in august and my DH Office sent out a big memo about how they had neglected to take out the health insurance money ,

I laughed and told DH they were wrong that it was 3 payday and we pay twice a month so the next check would be unaffected by their "error" I was right LOL

[Ima saver]

I am glad I had an extra paycheck this month cause dh was off for a whole week when we went to florida, so the money still comes out ok.

[y26]

To add to my post. I think this system only works if you have a structured bill paying system. My months always repeat themselves. First pay week i pay the same bills every month then next pay week i pay the remaining two which is a water bill and mortgage. It is the same every month.

I have a spread sheet set up al least 2-3 months before hand. Heck i already know what amount I'm paying for bills in January...

[Tree0164]

I look forward to this "free money" month it really helps the budget. I will either put it in savings or in November our free money month is November so that will help with Christmas this year!

[Ingtar17]

I tried doing this, but I found that I really did need those extra two pays a year to meet my budget. I think it can work if I can find ways to bring my budget down, but so far no luck.

[mariogreymist]

What I do with that "extra" paycheck

I keep my finances in a spreadsheet that tracks paydays and expenses by date. A couple of times a year, I get an extra check and I make double payments on principle to my school loans. This means four extra payments a year to principle alone, greatly reducing the effect of compounding interest.

[asmom]

Yup, I did that for years when was still getting bi-weekly. Now that I get paid monthly, it is one of the things I really miss.

[mobby]

I could not get it!!

[zee8]

I am waiting for my salary to turn on my cut internet connect