From Yahoo Finance: 2024-08-02 14:25:00

If you’re paid biweekly, two months a year will have three paychecks due to the 52-week calendar and 26 pay periods. Track your first paycheck of 2025 to know when to expect the extra pay. Resist the urge to splurge and plan how to use the funds wisely.

Consider using your extra paycheck for financial goals like extra mortgage or student loan payments. Making additional payments can significantly reduce the total interest paid over the life of the loan. Save some funds for emergencies or long-term goals by utilizing high-yield savings accounts or CDs for compound interest.

High-yield savings accounts and CDs offer rates as high as 4%, well above the national average savings interest rate of 0.41%. Use your extra paycheck wisely to boost your savings or pay off debts faster. Plan ahead to maximize the impact of the additional funds on your financial well-being.

Read more: How to make the most of a 3-paycheck month