Here’s how to use an extra paycheck this month

For workers who are utilized to receiving their paycheck each different week, the calendar is aligned successful January to springiness immoderate biweekly wage earners “bonus” 3rd paychecks during the year.

For 2026, the bonus months are either January and July (if the archetypal paycheck was paid connected Jan. 2), oregon May and October (if the archetypal paycheck was paid connected Jan. 9).

Having an other paycheck successful a period tin assistance you scope your fiscal goals much quickly. You tin usage the wealth to:

• Add to an exigency fund

• Pay down high-interest debt

• Afford regular expenses

Or you tin use this other paycheck towards aggregate fiscal goals.

Say, for example, you gain $5,000 of income aft taxes and withholding each period — paid bi-weekly — and aft you’ve paid each of your monthly expenses, you person $100 remaining. But successful a period erstwhile you person a 3rd paycheck, you’d person an other $2,600.

What you tin bash with that bonus paycheck is yet up to you and your fiscal needs. But if you’re looking for ideas to bolster your fiscal bottommost line, present are Bankrate’s suggestions for putting that other paycheck to bully use.

An exigency money tin assistance you wage for unexpected costs, specified arsenic car repairs oregon aesculapian bills. However, lone 30% of Americans would usage their savings to wage for an unplanned disbursal of $1,000, according to Bankrate’s latest Emergency Savings Report, for which a survey was conducted successful December 2025.

If you’re debased connected exigency savings, it tin wage to deposit the wealth from an other paycheck into a high-yield savings account. In summation to providing you with a fiscal cushion, wealth successful a savings relationship besides earns interest. For example, $1,000 successful a high-yield savings relationship with an yearly percent output (APY) of 4.00% would gain astir $40 successful involvement implicit a year.

In the months you don’t person an other check, you tin besides effort to prevention a small astatine a time, possibly done a divided nonstop deposit whereby your leader deposits a information of your paycheck into a savings relationship via nonstop deposit.

Bankrate’s take: It’s advisable to person upwards of six months’ worthy of expenses saved successful an exigency fund. But the much wealth saved, the better. For those who are starting an exigency fund, fto Bankrate’s exigency money primer usher you to gathering your rainy-day fund.

If you already person a steadfast exigency fund, you whitethorn determine to prevention the wealth from your other cheque toward upcoming expenses oregon goals:

• Home purchases oregon repairs: You could acceptable speech the other wealth for upcoming house-related costs specified arsenic a caller refrigerator oregon a extortion repair that’s not covered by insurance.

• Medical expenses: If you’re expecting to incur aesculapian expenses that security won’t cover, this other wealth could beryllium utilized to assistance screen that.

• Insurance payments: Property taxes and security premiums are often owed quarterly oregon biannually. An other cheque could supply a lifeline if you’re down connected redeeming for these payments.

• A vacation: Devoting immoderate oregon each of your other cheque toward a planned abrogation tin assistance guarantee you won’t spell into indebtedness to spend it.

• Retirement: You whitethorn beryllium capable to temporarily set the percent you’re contributing to your 401(k) account. For instance, accidental you gain $100,000 per twelvemonth and lend 6% to your 401(k) — oregon astir $231 per paycheck. Increasing this to 20% for the other cheque would effect successful astir $769 successful savings (or $538 more) for that check. You could besides temporarily summation your publication to an IRA, arsenic taxation instrumentality permits.