If you get paid weekly or bi-weekly, approximately 2 times a year you will find yourself with what I call a bonus paycheck. This is a paycheck that happens to fall in your budget to where there are very few or no bills that have to come from this paycheck!
My husband gets paid bi-weekly and our bonus paychecks are in May and November each year.
When you are completing your budget and you come across a bonus paycheck, here are some options on how to handle the increase in income during this budget period:
- Use it to fund your Emergency Fund
- Use it pay of debt
- Apply it towards a savings goal (such a college, new appliance, etc)
- Spend half to purchase items you need and save the rest
- Put it into a rainy day fund to use for expenses that might pop up in the next few months such as clothes, new tires, etc.