Are You A W-2 Employee Who Will Receive Three Paycheck Next Month? Here Are Some Tips How To Budget Your Extra Check

Numerous Americans are starting to feel becoming increasingly financially-constrained. Next month’s extra pay might be helpful.

There are two months out of the year when W-2 employees who receive biweekly pay will receive three paychecks rather than the typical two. Your first three-paycheck month in 2023 might be March, depending on your pay schedule.

If you received your first paycheck on Friday, January 6, 2023, your three paycheck months would be March and September. If not, your three paycheck months would be June and December if your first pay period in 2023 fell on a Friday, January 13.

According to a CNBC article from February 21, 2023, receiving your third paycheck in March is a great idea. There are some wise tactics you can use, especially with the tax deadline quickly approaching, like setting aside money if you anticipate owing money this year or contributing to your IRA, which may help you pay less in taxes.

But if you have credit card debt, you must pay it off before making any investment decisions. Americans are creating more debt as their daily expenses rise. A balance is much more expensive to carry at the same time that annual percentage rates are also rising.

However, a better way to budget is to take into account your income over the course of the year to smooth out the highs and lows, then view your cash flow on a monthly basis. This is better than planning monthly expenses and savings from paycheck to paycheck.