Life in Transition

Navigating Personal Finances During Life Transitions

Extra Paycheck!

I currenly work two jobs, but for the same boss.  My boss is a professor at a university here in Louisville, and she’s also started a small bio-tech company.  The two share the same space, so it’s easy to go back and forth between working for the company and the university.

The pay schedule for the two are different.  The company pays monthly, and I get a paycheck the third Friday every month.  On the other hand, the university pays bi-weekly. Typically, for every monthly paycheck I get, I receive two bi-weekly paychecks, and I create my budget base on those premises.  Well, this month I got an unexpected surprise, an extra paycheck!

Now I don’t create monthly budgets based on the calender month.  Instead I begin a new budget on the day I receive my monthly paycheck.  So, my current “fiscal” month began on March 16 since that was when I received my paycheck from the company.  It’ll end on April 19th, the day before my next one.  So far, during this month, I have already received two bi-weekly paycheck, one on March 16 and one on March 30.  Yesterday, I just realized that I will get an extra paycheck before the fiscal month closes.

Since I didn’t budget for the extra paycheck, I’m debating on how I should best use it.  It won’t be much; it’ll be about $325.  Still, I want to use that money wisely.  Should I save it in one of my targeted savings accounts, put in in my Roth IRA, or use the money to buy a more professional looking wardrobe (Note: I’ve slowly realized that I dress too much like a high schooler, since I bought most of the clothes I wear in high school.  I definitely think it’s a good time to re-evalutate my closet and some professional attire more fitting to my age)?  What would you all do with an “extra” paycheck?

 

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7 thoughts on “Extra Paycheck!

  1. I love it when that happens! I budget and pay my mortgage every two weeks, so I don’t notice a huge increase when I get 3 pay cheques, but I sure see it when I tally everything up at the end of the month!

    If I were you I’d split the cheque. Put half of it into your Roth account, and then scour the sales racks to start building a more professional wardrobe with the other half.

  2. That’s wonderful! I love, love, love getting an extra paycheque. I won’t be getting a 3 paycheque month until August! Like Cassie, I’d probably also split the money 🙂

  3. getrichpoint on said:

    I would buy a cute gift for my wife, give some money to my mom and use the remaining 80% to buy some good stocks.

  4. My next extra paycheck isn’t until June, but my bf gets paid weekly, so his extra paycheck is nearly every other month. We usually use it to pay down debt.

  5. I’d use that money for the Roth IRA. Old You will thank you! If you are looking to upgrade your wardrobe, I suggest checking out a consignment store, and then keeping eyes out for coupons at stores like Banana Republic or Loft. If you get lucky, you can get a full suit (jacket + bottom) for around $100 or definitely under $150.

  6. I’d put it toward my student loan debt because that is where every extra dollar goes in my budget!

  7. Thanks for all the comments and suggestions. I’ve decided to put half of it in my Roth IRA. I’m still debating what to do with the other half. I will most likely use it to buy some professional clothes or put it in my tuition fund.

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