It is a 3 paycheck month for a lot of people, did you notice?

It is that time of the year again, did you notice over the last few pay checks that your cushion is growing in your checking account? That there is a little more time to hold onto your money before the bills are due? It is the extra pay cycle catching up with the calendar. Take advantage of it, grab that extra cushion before it gets sucked up by this or that and pay your highest interest debt down with it. Because you know if it sits in that checking account it inevitably will be chewed up and you will have nothing to account for the “bonus” you got. You may be asking yourself, well how can I do that? I don’t have it. Interesting, when you have payroll deductions taken out, that same amount is taken out each check, whether you have 2 or 3 paychecks in a month. You won’t even notice because you are in a system, but that extra payment you will notice in the savings, or if you sign-up for bi-weekly mortgage payments. It happens twice per year which gives you an extra payment on your mortgage every year, which I believe knocks off something like 12 years off a 30 year mortgage.

If you find yourself coming up for air twice per year because the extra paycheck helps you get current on your bills, it may be time to reassess where you are financially. Do you always hear the terms, living below your means, or above your means and never really knew what exactly that was? If you are living paycheck to paycheck and the extra check helps keep you afloat you are living above your means. If you can in fact can feel and use that extra money to pay down debt out right you are living within your means because you still have money to pay your monthly bills. Being a Financial Organizer, I use this example to help people see where they are relatively quickly. If you would like help getting your financial house in order and getting to the point where you can put that “bonus” to your highest interest rate debt, please contact me. As always unless I can save you 3 times my fee in one session, you don’t pay anything.

 

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~ by debt2dreams on March 16, 2012.

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