Back in the day when I didn’t have many monthly bills, I budgeted weekly, which means I never had to deal with months when there were more paychecks than others. Then I moved, and now that I’m faced with more bills (and a new budgeting method) I’m experiencing the joys of a 5th paycheck for the very first time!
I must say, there’s something very empowering about having a 5th paycheck and knowing your budget isn’t really depending on it. I could’ve spent it on shoes and booze and my budget wouldn’t have suffered one bit. Fortunately I wasn’t planning on doing that. Here’s where I finally decided my money would go:
$169.19 Roth IRA
$314.76 Car Loan
Believe it or not, A LOT of thought went into this. Originally when I drafted my budget, the 5th paycheck would replenish the funds that weren’t getting as big a contribution due to the 4-week method (basically the efund, travel fund, donation fund, and gift fund). It’s changed about a dozen times since then. However, due to recent developments (like my Efund essentially being put on hold, and my strong desire to max out my Roth IRA, and then my recent urge to get rid of the car loan) I came to the distributions above.
Thanks to this extra paycheck I’ll be accomplishing one goal, and closing in on another!