Why some months have three paychecks (and what to do with them)
If you're paid every two weeks, two months a year bring an extra paycheck. Here's why it happens and five good ways to use it.
If you’re paid every two weeks, most months you get two paychecks. But twice a year, a month brings a third. If you’re paid weekly, four months a year bring a fifth. We call these bonus paychecks, and they’re one of the easiest ways to get ahead without earning more.
Why it happens
A year has 52 weeks. If you’re paid every two weeks, that’s 26 paychecks, not the 24 you’d get with two per month. Those two extra paychecks have to land somewhere, and they show up in months where your paydays fall early enough to fit three.
Weekly pay works the same way: 52 paychecks instead of 48, so four months a year have a fifth payday.
Which months it happens in depends on your payday, so it shifts from year to year. Every 11 years or so, the calendar even lines up for a 27th bi-weekly paycheck (or a 53rd weekly one), because a year is 52 weeks plus a day, or two in a leap year.
Why it feels like a bonus
Most of your bills are monthly: rent, the car payment, your phone. If you plan your budget around two paychecks a month, those bills are already covered by the first two. The third paycheck has no bills waiting for it.
That’s why it’s worth planning on purpose. Without a plan, a bonus paycheck tends to disappear into everyday spending.
Five good ways to use a bonus paycheck
- Start or top up an emergency fund. Even $500 to $1,000 set aside keeps a surprise car repair from becoming credit card debt. What’s an emergency fund?
- Make an extra debt payment. One extra payment a couple of times a year can take months off your payoff date. Try it in our debt payoff calculator.
- Get ahead on big bills. Car insurance every 6 months, a yearly subscription, holiday gifts: put the bonus check into a sinking fund so those bills are already paid for.
- Pay next month’s rent early. If your budget is tight, getting one month ahead gives you breathing room for the rest of the year.
- Save for something you want. A bonus paycheck is a good time to put money toward a trip or a purchase without touching your regular budget.
A mix works too: half to savings and half to debt is a solid default.
Find yours
Use the bonus paycheck finder on our home page. Pick how often you’re paid and your next payday, and it shows which months bring an extra check over the next year.
BudgetWatch, our iPhone app, finds them automatically, counts down to the next one, and helps you decide what it’s for before it lands.