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View Full Version : May has 3 paycheck days. Is the third paycheck free money?


happywaffle
05-29-2008, 04:37 PM
This one is seriously giving me a headache, like trying to split the check at a restaurant.

My wife and I each get paid every other Friday, regardless of the calendar month. And because of the way this month (May 2008) is structured, there's 3 paydays for us: the 2nd, 16th, and 30th.

Meanwhile, like most people I imagine, our budget is calculated monthly and based on two paydays in the month.

So, is this third paycheck, like, extra money? Next month has two paydays, as did last month. Where did this extra cash come from? I obviously understand how a quirk of the calendar led me to get paid three times, but my brain hurts trying to figure out how it applies to our budget.

Can we go spend tomorrow's paycheck like drunken sailors and still end up how we started? Can you explain this to me somehow?
:confused:

Justin_Bailey
05-29-2008, 04:40 PM
So, is this third paycheck, like, extra money? Next month has two paydays, as did last month. Where did this extra cash come from? I obviously understand how a quirk of the calendar led me to get paid three times, but my brain hurts trying to figure out how it applies to our budget.

There are 26 pay periods in a year when you are paid bi-weekly. Because of that, two months will have a third pay period. It's not "extra money", it's just how the calendar falls.

Antinor01
05-29-2008, 04:40 PM
You are budgeting for 24 paychecks, but actually receiving 26. It's not extra money, it's just that you are budgeted for a different schedule then you actually get paid for.

Sunspace
05-29-2008, 04:41 PM
One paycheque every two weeks is 26 pays a year.

Two paycheques every month is 24 pays a year.

If you operate based on two pays a month, but get paid 26 times a year, the other two pays are indeed 'extra' money.

What usually happens with me is that it sort of works the other way around; I start anticipating the third pay before it arrives, and instead of being extra, it's very necessary.

Lemur866
05-29-2008, 04:43 PM
There are 52 weeks in a year. If you get paid every two weeks, then you get 26 paychecks a year. There are 12 months in a year. If you pay bills every month, you pay bills 12 times a year, and normally you pay that with two paychecks, so you're budgeted for 24 paychecks a year. Except, twice a year you're going to get a month with an extra paycheck.

This isn't free money. But it does mean that if you're able to pay your bills on 24 paychecks a year, you've got two paychecks a year surplus. If

If you don't want the extra paycheck, feel free to send it to me.

Annie-Xmas
05-29-2008, 04:44 PM
If you are getting paid every two weeks, you are getting 26 paychecks a year. Since there are only 12 months to a year, two months in the year will have three paydays.

Hampshire
05-29-2008, 04:45 PM
I get paid bi-weekly (26 checks) every other Friday.
My wife gets paid twice a month (24 checks) on the 15th and the last day of the month.
If we had identical salaries her checks would be larger than mine.

Zsofia
05-29-2008, 04:55 PM
In other words, this is the check that you SHOULD send to your mortgage company.

happywaffle
05-29-2008, 05:00 PM
Okay, I think I got it. To summarize:

My monthly budget is calculated based on 2 paychecks for how much I actually take home every month. If I was making a "true" budget, I would divide my annual income by 12. Then I would come in low for 10 months of the year, and substantially higher for the other 2. This month is one of those 2.

So in other words, the way my budgeting system works, I can totally blow tomorrow's paycheck on titties and beer. Woooooooooo!

~ wife glares at me ~

*sniffle* okay, I'll send it to the mortgage company. ~ kicks rock ~

KneadToKnow
05-29-2008, 05:03 PM
Here's the weird thing: I'm on the opposite every-other-week payment schedule from the OP, so one of my three-paycheck months this year was February. Of all the months you don't expect to have 5 Fridays ...

friedo
05-29-2008, 05:03 PM
*sniffle* okay, I'll send it to the mortgage company. ~ kicks rock ~

Just remember: the faster you pay off your mortgage, the more titties and beer you can afford in the long run.

Really Not All That Bright
05-29-2008, 05:06 PM
Just remember: the faster you pay off your mortgage, the more titties and beer you can afford in the long run.
Equally, try to remember that a bird in the hand is worth two in the bush.

Santo Rugger
05-29-2008, 05:07 PM
I have 3 bank accounts. Every paycheck, half my car payment, insurance, and cell phone go into one account; half my rent goes into another, and the remainder goes into my main account. This January and July, I get an extra half cycle in my first two accounts. Food and fuel still cost the same every two weeks, so I only have an extra half car and rent payment to spend on hookers and blow in each of those months.

Equally, try to remember that a bird in the hand is worth two in the bush.

When you're talking about titties, one in the bush is worth two in the hand.

silenus
05-29-2008, 05:08 PM
Just remember: the faster you pay off your mortgage, the more titties and beer you can afford in the long run.

Yeah, but by then the titties are sagging and the beer is flat. Go for the gusto now! :D

Leaffan
05-29-2008, 05:12 PM
I pay my mortgage every pay day: 26 times a year. I still need groceries and gas and general living funds. There's no such thing as free money for me. It used to work out a lot better when I was young and only paid monthly rent. Ahh, the good old days......

happywaffle
05-29-2008, 05:13 PM
Man, I just realized every other poster on this thread has at LEAST ten times as many posts as me. You folks been around awhile, ain't ya.

Edit: Except for you, Justin_Bailey. Quit slackin.

Skammer
05-29-2008, 05:29 PM
I'm on the same schedule as you, although my 3rd paycheck twice a year never seemed to be 'extra.' There was always something that needed it.

Last year I changed my mortgage payment schedule so that now instead of 12 monthly payments we make 26 half-payments, each on a payday. Which comes to an extra payment per year; plus prevents our mortgage being due on a week that's not a payday.

gigi
05-29-2008, 05:34 PM
Yes, it's extra money. Go nuts. Or, titties.

Now that I'm salaried, it's once a month for me. I miss those three-paycheck months!

whitetho
05-29-2008, 05:43 PM
Its worth pointing out that about once a decade or so you have 27 pay periods in a year, thus three months of three paychecks. The reason is because the year -- depending on whether it is a leap year or not -- is actually one or two days longer than 26 weeks, so over time you slowly accumulate a few more days. The paychecks move one or two days earlier each year, until you get a situation such as when the first paycheck is issued on January 1st, and the 27th on Dec. 30th or 31st, depending on whether it is a leap-year or not.

RedSwinglineOne
05-29-2008, 05:50 PM
...
So in other words, the way my budgeting system works, I can totally blow tomorrow's paycheck on titties and beer. Woooooooooo!

...

Don't blow the whole thing in titties and beer. Its an 'extra' paycheck in that it doesn't need to go toward your mortgage and other monthly bills, but that is still money you would have been spending on your normal day to day expenses for the next two weeks like food and.. well titties and beer. :)

Projammer
05-29-2008, 05:51 PM
The company I work for even goes one better.

The employee portion of annual insurance premium deduction is divided into 24 payments. That third "bonus" paycheck doesn't have an insurance premium on it either!

Woohoo! More titties!

ivylass
05-29-2008, 05:54 PM
We're paid every other week too, so twice a year, the paycheck is a bit bigger, since they deduct insurance on a monthly (24 times a year) basis.

My next "free paycheck" is in August. So the last paycheck of the month, August 29, will not have insurance deducted. It's not much, but it's nice.

Cunctator
05-29-2008, 06:19 PM
I've always been paid fortnightly. I don't regard the occasional third payday in a calendar month (as yesterday was) as anything special.

commasense
05-29-2008, 08:52 PM
Here's the weird thing: I'm on the opposite every-other-week payment schedule from the OP, so one of my three-paycheck months this year was February. Of all the months you don't expect to have 5 Fridays ...It only happens every 28 years.

CookingWithGas
05-29-2008, 09:29 PM
...I can totally blow tomorrow's paycheck on titties and beer. Woooooooooo!Hey, I'm flying to Austin Monday for a meeting on Tuesday. Where are the titties and beer? :D

DrDeth
05-29-2008, 09:52 PM
Man, I just realized every other poster on this thread has at LEAST ten times as many posts as me. You folks been around awhile, ain't ya.

.

Naw.

Frank
05-29-2008, 09:53 PM
I've always been paid fortnightly. I don't regard the occasional third payday in a calendar month (as yesterday was) as anything special.
How do you budget? If you treat it as the usual next paycheck in your budget, by the end of the year you'll be paying your cable bill a month ahead.

My budget is on two paychecks a month. July's third paycheck is buying me a new bed, and I'm still on budget.

BobT
05-29-2008, 09:55 PM
Most companies that you biweekly will have fewer deductions in the months with three paychecks. While income taxes are withheld with each check, usually payments for health insurance and union dues are done on a monthly basis and payroll systems just divide those payments in half and skip them on the "extra" check.

Cunctator
05-29-2008, 10:01 PM
How do you budget? If you treat it as the usual next paycheck in your budget, by the end of the year you'll be paying your cable bill a month ahead.Thankfully I don't really have to worry about budgeting. I just pay all bills as soon as I receive them.Most companies that you biweekly will have fewer deductions in the months with three paychecks. While income taxes are withheld with each check, usually payments for health insurance and union dues are done on a monthly basis and payroll systems just divide those payments in half and skip them on the "extra" check.My employer deducts all those sorts of things at a fortnightly rate too.

Frank
05-29-2008, 10:23 PM
Thankfully I don't really have to worry about budgeting.
Ah, there's the difference. For those of us who do budget, spending the 3rd July paycheck on a bed will free up the 3rd December paycheck for titties and beer. Or possibly a sofa.

Bad Samaritan
05-29-2008, 10:39 PM
I get paid weekly, so I get 4 extra checks per year. That means fewer tits and beer per sitting, but they come with more frequency.

Everything in moderation, folks...

SlickRoenick
05-29-2008, 11:21 PM
The company I work for even goes one better.

The employee portion of annual insurance premium deduction is divided into 24 payments. That third "bonus" paycheck doesn't have an insurance premium on it either!

Woohoo! More titties!Similarly, my 3rd paychecks simply only take out taxes. Thing like TSA and health insurance only get taken out on the first 2 paychecks, making the 3rd seem a bit larger for the same amount of hours worked.

Dag Otto
05-30-2008, 12:10 AM
I think this thread shows the importance of putting titties and beer into the monthly budget. Then you can waste this extra check on stuff like insurance and odd bills because hey, titties and beer are already paid for.

Enright3
05-30-2008, 10:10 AM
I'm on the same schedule as you, although my 3rd paycheck twice a year never seemed to be 'extra.' There was always something that needed it.

Last year I changed my mortgage payment schedule so that now instead of 12 monthly payments we make 26 half-payments, each on a payday. Which comes to an extra payment per year; plus prevents our mortgage being due on a week that's not a payday.
I'm in the cool situation where both my wife and I get paid every other Friday... but it's on opposite Fridays! So not only do we get a paycheck every friday, we also each have a different two months where we get three checks.

On a side note, one of the perks I like about the 3rd paycheck month is that insurance monies aren't held out. It's a nice little bonus. :)

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