What to do with that Extra Paycheck this Month

Two times a year a magical thing happens, and I'm not talking about full moons, Christmas, or your Birthday. I'm talking about those two months with 5 full weeks (March and November of 2019). If you work on a traditional bi-weekly pay schedule you will get 5 paychecks this month. If you're extra lucky your benefits won't get taken out... giving you even more extra cold hard CASH. Disclaimer: For some, March and August may have been your bonus paycheck months for 2019. It all depends on your pay calendar. Check out the chart below for more info! 

www.thebalance.com

So what should one do with this extra paycheck? There are, of course, many things you could buy/do but perhaps some of these ideas will suit you (and your wallet) better. These aren't the fanciest ideas but I feel as if they are often overlooked when people encounter extra cash. Oh, and disclaimer: I'm no financial expert, money manager, or stock sorcerer so take my tips with a grain of salt! 

Save

My philosophy is that anyone young and old should have some form of a savings account. Maybe you have $15 or maybe $15,000... either way, it's never too late to save for a rainy day. But... might I suggest a High Yield Savings Account, especially if you're not expecting to dip into your savings frequently. A HYSA is a secure and safe savings account that gives you much more interest than a traditional savings account. 

I use Ally Bank from my HYSA. It's a great bank for us millennials.

Invest 

Another great option is investing that paycheck. I would recommend investing only if you already have substantial savings built up. Invest in a diversified portfolio (that just means don't put all your eggs in one basket) and be sure to do some research. You can invest in stocks, bonds, Certificate of Deposit's, mutual funds, or even contribute more to (or start) a 401k. Don't get all Wolf of Wall Street on it, but it doesn't hurt to make your money work for you. 

Pay Off Some Debt

An extra influx of cash means you can pay off (or pay more than you usually do) some debt. Car payments, medical bills, student loans, credit cards, even your mortgage. Pay a little extra this month and save yourself interest in the long run. Sure it's not the fun option... but it will pay off. Don't know where to start. Art Rainer in The Money Challange (see photo below) recommends paying off your smallest debt first, then work on tackling the rest from smallest to largest. 

10/10 Recommend This Book! 

So that's it! I told you it wasn't fancy. Save, Invest, or Pay Off Some Debt. Forgo any frivolous purchases and put the money you have worked hard for back to work for you. Oh, and get ready for May and October of 2020!