{"id":22971,"date":"2026-01-21T17:07:38","date_gmt":"2026-01-21T17:07:38","guid":{"rendered":"https:\/\/budgetadirect.com\/?p=22971"},"modified":"2026-01-21T17:07:38","modified_gmt":"2026-01-21T17:07:38","slug":"heres-how-to-use-an-extra-paycheck-this-month","status":"publish","type":"post","link":"https:\/\/budgetadirect.com\/?p=22971","title":{"rendered":"Here\u2019s How to Use an Extra Paycheck This Month"},"content":{"rendered":"
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For workers who are used to receiving their paycheck every other week, the calendar is aligned in January to give some biweekly wage earners \u201cbonus\u201d third paychecks during the year.\u00a0<\/p>\n

For 2026, the bonus months are either January and July (if the first paycheck was paid on Jan. 2), or May and October (if the first paycheck was paid on Jan. 9).<\/p>\n

Having an extra paycheck in a month can help you reach your financial goals more quickly. You can use the money to:<\/p>\n

Or you can apply this extra paycheck towards multiple financial goals.<\/p>\n

Say, for example, you earn $5,000 of income after taxes and withholding each month \u2014 paid bi-weekly \u2014 and after you\u2019ve paid all of your monthly expenses, you have $100 remaining. But in a month when you receive a third paycheck, you\u2019d have an extra $2,600.<\/p>\n

What you can do with that bonus paycheck is ultimately up to you and your financial needs. But if you\u2019re looking for ideas to bolster your financial bottom line, here are Bankrate\u2019s suggestions for putting that extra paycheck to good use.<\/p>\n

1. Start, or add to, an emergency fund<\/h3>\n

An emergency fund can help you pay for unexpected costs, such as car repairs or medical bills. However, only 30% of Americans would use their savings to pay for an unplanned expense of $1,000, according to Bankrate\u2019s latest Emergency Savings Report, for which a survey was conducted in December 2025.<\/p>\n

If you\u2019re low on emergency savings, it can pay to deposit the money from an extra paycheck into a high-yield savings account. In addition to providing you with a financial cushion, money in a savings account also earns interest. For example, $1,000 in a high-yield savings account with an annual percentage yield (APY) of 4.00% would earn around $40 in interest over a year.<\/p>\n

In the months you don\u2019t receive an extra check, you can also try to save a little at a time, perhaps through a split direct deposit whereby your employer deposits a portion of your paycheck into a savings account via direct deposit.<\/p>\n

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\n Bankrate\u2019s take:
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\n It\u2019s advisable to have upwards of six months\u2019 worth of expenses saved in an emergency fund. But the more money saved, the better. For those who are starting an emergency fund, let Bankrate\u2019s emergency fund primer guide you to building your rainy-day fund.\n <\/p>\n<\/div>\n

2. Save for other goals or expenses<\/h3>\n

If you already have a healthy emergency fund, you may decide to save the money from your extra check toward upcoming expenses or goals:<\/p>\n