Should I Put Extra Money Towards My Mortgage Or Retirement

Most employees get paid twice a calendar month or biweekly. If you get paid biweekly, there are 2 months in 2022 in which y'all will get three paychecks.

If y'all get paid twice a month, you lot will become 24 paychecks a twelvemonth – commonly on the 1st and 15th of the calendar month. Only if yous get paid biweekly, you will get 26 paychecks a year. That is two extra paychecks a year.

The key is to plan your monthly upkeep based on ii paychecks rather than 3. You can use the two extra paychecks to reduce your debt, save for your vacation, or practice a abode improvement project.

If you go paid on Fridays:

If your first paycheck for 2022 is on January 7, then your iii paycheck months are Apr and September.
If your outset paycheck for 2022 is on January 14, then your 3 paycheck months are July and Dec.

IF YOUR FIRST PAYCHECK IS Jan 7, 2022

If y'all get paid biweekly, and your first paycheck is on Jan 7th, your paydays are as follows. 3-paycheck months are in cerise .

January 7
Jan 21
February 4
February 18
March iv
March eighteen
Apr 1
April xv
April 29
May 13
May 27
June 10
June 24
July viii
July 22
August 5
Baronial 19
September 2
September 16
September 30
October 14
October 28
November eleven
November 25
December nine
December 23

IF YOUR FIRST PAYCHECK IS JANUARY 14, 2022

If y'all become paid biweekly, and your get-go paycheck is on Jan 14th, your paydays are as follows. Three-paycheck months are in red .

January xiv
January 28
February 11
February 25
March xi
March 25
April 8
April 22
May half-dozen
May 20
June three
June 17
July 1
July 15
July 29
August 12
August 26
September ix
September 23
October 7
October 21
November 4
November xviii
December 2
December 16
December 30

How To take advantage of your 3 paycheck months

Have A Plan –If you plan, you tin put the extra paychecks to work. Most people don't have a plan and end up spending that coin instead. Even worse, some people don't even know what months those extra paychecks come up in.

Build Emergency fund – If you lot don't accept an emergency fund, use the actress paychecks to start one. The rule of thumb is yous demand half dozen months of expenses saved for emergencies such equally an illness or unexpected chore loss. Put emergency funds in a liquid account such as a money market account then that you can hands have access to the coin without paying penalties.

Pay off your high-interest debt – if you lot have a high-interest credit card debt or a car loan, use the money to pay some of it off starting with the loan that has the highest interest charge per unit.

Contribute to your retirement business relationship – if you take an IRA or a Roth account, contribute to it to salve for retirement. A few hundred dollars every month may not sound like much but due to the ability of compounding, it will exist worth a lot more in 20 or 30 years. If you don't accept one, it's fourth dimension to open up i.

Pay off your mortgage – Consider paying off a portion of your mortgage. Check with your mortgage company to ensure that you have no prepayment penalties. If yous do this, more than of your future payments will go towards the principal and less towards involvement.

Salvage for downward payment on a firm – If you lot don't own a business firm, use the money to save for a down payment on a house

Save money for Christmas souvenirsouthward – Save the coin to buy Christmas gifts at the stop of the year

Save for abode improvement projects – Utilize the money to salvage for that dream dwelling improvement project, whether it is renovating the kitchen or upgrading your media room.

Invest in dividend-paying stocks – If y'all would like to replace the income from your job with passive income, buy some proficient dividend stocks

Bottom line

If yous get paid biweekly, yous will get ii to three actress paychecks a year. What months y'all get the extra paychecks depends on your pay calendar. Have a plan in place to put those extra paychecks to work. Contribute to your retirement account, save for a vacation or your dream home improvement project, or pay off high-interest-rate loans.

Source: https://mymoneyplanet.com/3-paycheck-months-2022/

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