Bank like a financial pro with the Alliant mobile app. Make payments, deposit checks, manage cards and so much more.
Renovate your kitchen, pay off high-interest debt, or have access to emergency funds when you need it with an Alliant Home Equity Line of Credit.
Browse new and used vehicle inventory, and qualify for a rate discount when you buy!81
Separate each of your savings goals into an Alliant Supplemental Savings Account so you can visualize your progress.
If you are paid biweekly, you’ll likely feel a bit more financially flush two months each year. Why? You’ll get three paychecks that month instead of being paid twice a month. It truly feels like a bonus. (And those of you who are paid each Friday will get a fifth paycheck four times a year!)
Getting three paychecks in one month creates a great opportunity for you to increase your savings, make a big dent in your debt, or open a new bank account with your extra funds. If you plan ahead to capitalize on this financial opportunity every time it occurs (see schedule below), the impact on your savings or debt will be equivalent to a month’s worth of your income.
Let’s assume that your expenses are consistent from month to month and you’re making ends meet during the ten months when you only get paid twice.
It's logical, then, that if you’ve been successfully paying your monthly expenses with the income from two paydays during your ten two-paycheck months, you should be able to pay your bills with only two checks during the two months when you get a third paycheck. That means you can dedicate your entire third paycheck toward other financial goals without impacting your ability to pay your usual monthly expenses.
Boost your savings. During the months you receive this third, bonus paycheck, set that amount aside as savings. Beef up your emergency fund, or save for retirement by contributing to a Roth IRA on top of your workplace 401(k). Add it to a savings account dedicated to paying for a family vacation or holiday purchases. Save for an upcoming home improvement project or add to your child’s college fund.
“High-yield savings accounts are a great place to start. They offer higher interest rates compared to regular savings accounts, allowing your money to grow faster. Certificates are another option. They typically offer higher interest rates for a fixed term, making them a good choice if you don't need immediate access to the funds,” said Mark Lau, Chief Financial Officer of Alliant Credit Union. “Consider allocating pre-tax dollars to Flexible Spending Accounts (FSAs) to cover qualified medical expenses. This can reduce your taxable income. Lastly, increasing your contributions to a 401(k) plan can be advantageous. Take full advantage of employer matching and enjoy the benefits of tax-deferred growth,” said Lau.
Open a new checking account. If you’ve been wanting to switch your checking to a high-yield checking account like Alliant’s but you’re nervous about making a math error and bouncing a check during the transition, use the extra funds from your bonus paycheck as a cash cushion to transition bills to your new checking account with less stress. It’s the perfect opportunity to get a checking account with fewer fees and a high-interest rate.
Pay down your debt. If you have credit card debt, student loans or a car loan, dedicate the bonus paycheck to paying down that debt. Pay off high-interest debt first to save the most money on interest.
“Making extra payments towards your debt principal can reduce the overall interest paid. Consider consolidating multiple debts into a single loan with a lower interest rate to simplify payments and reduce interest costs. Develop a structured plan to pay off debt, such as the snowball or avalanche method, to stay organized and motivated,” said Lau.
Tackle multiple goals. Not sure which goal you should pursue with your extra check? Split it across several goals to make some progress toward all of them. For example, you can save part of your bonus paycheck and dedicate part to debt reduction, which is an especially good plan if you have debt and lack an emergency fund. Or save part of your extra paycheck in your emergency fund and part in your holiday gift fund.
Have some fun! Every once in a while, we all need to pamper ourselves instead of always saving money. Let yourself spend a portion of the bonus paycheck on a special splurge. Go to a ballgame or concert. Get a massage or a manicure. Buy the new jacket or Coach purse you’ve had your eye on. My rule of thumb is that I can spend up to 10% of any bonus money on fun purchases or activities, but the rest goes into savings.
Be strategic in planning how to use your next "extra" paycheck to accomplish your financial goals of debt reduction or a savings boost.
And because a big part of being strategic is having a plan, we've calculated the dates when you'll receive an extra/bonus paycheck for the next two years and provided it in the table below. Add them to your calendar so they'll be baked into your budget and financial plan!
*Because January 1, 2027 is a Friday, there are 27 Fridays in that calendar year instead of the usual 26. If your first paycheck in 2027 is on January 1, that means you’ll have three three paycheck months that year.
When you get paid every other week, you receive 26 paychecks each year (52 weeks divided by 2). That means you receive two paychecks most months. But if you think it through, two paychecks a month for 12 months adds up to only 24 paychecks, not 26. That means that there will be two months every year – generally, months in which you get a paycheck on the first or second day of the month – when you get three paychecks.
Some financial institutions, including Alliant, offer Early Payday, a feature that gives you your paychecks up to two days early. If you bank somewhere that has this feature, your three paycheck months will likely be different than the ones listed above. Because the exact timing of Early Payday depends on when the payor submits payroll information, the exact date you get paid—Wednesday, for instance—may not be 100% consistent.
Pam Leibfried is a marketing content specialist whose love of words led to a writing and editing career. After a brief stint teaching English, she transitioned to corporate communications and spent 20 years at The Nielsen Company before joining Alliant’s content development team. Early in her work life, Pam’s friend Matt explained the benefits of a 401(k) and her dad encouraged her to start a Roth IRA. Their good counsel prompted her to prioritize retirement savings, which just might enable her to retire early so she can read more and live out the slogan on her fave T-shirt: “I have a retirement plan: I plan on quilting.”
with an Alliant high-rate saving account
with award-winning saving rates and loans
Get even more personal finance info, tips and tricks delivered right to your inbox each month.
Thanks for subscribing to Alliant's Money Mentor newsletter! You will now receive personal finance tips in your email inbox each month.
You are leaving Alliant’s website to enter a website hosted by an organization separate from Alliant Credit Union. The products and services on this website are being offered through LPL Financial or its affiliates, which are separate entities from, and not affiliates of, Alliant Credit Union.The privacy and security policies of the site may differ from those of Alliant Credit Union.
You are leaving an Alliant Credit Union website and are about to enter a website operated by a third-party, independent from Alliant Credit Union. Alliant Credit Union does not manage the operation or content of the website you are about to enter. Alliant Credit Union is not responsible for the content and does not provide any products or services at this third-party website. The privacy and security policies of the site may differ from those of Alliant Credit Union.
