How often are you paid? If you are paid biweekly then you actually receive twenty-six paychecks a year. If you create your monthly budget on two paychecks a month, you receive two extra paychecks a year. If you are paid weekly you will receive fifty-two. However if you can create your monthly budget on four paychecks a month then you will have four extra paychecks a year. These extra paychecks can really be used to your advantage. If you do not include them in your budget then it is extra money that you can use however you wish. Here are five things to do with your paychecks.
1) You can put them directly into your savings account. Since you do not need the money to meet your expenses this is really easy to do. You should not feel like you are missing any money, and you are allowing it to grow to your advantage.
2) You can use the paychecks to pay off existing debt. This will help to speed up your debt snowball. It can be very satisfying to watch your debt disappear at quicker rate then you planned.
3) You can plan on saving the checks specifically for one category that you do not have room to cover in your normal budget. This could include Christmas, vacations, or a down payment for house. If you are really focused on the debt snowball these categories may be neglected in order to help you reach your goal.
4) You may want to donate part or all of the money to charity. It is always nice to help others. Again this is money you haven’t planned on using, so you will not miss the money.
5) You may choose to use some of the money as blow money. You can go out to a nice restaurant or buy that one item you have been waiting on. It is important to allow yourself some fun along the way. This will help you to stay focused when you need to.
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