Saturday, October 25, 2008

Your Extra Paycheck

Trent at the Simple Dollar posted recently about what you should do with an extra paycheck. He says you should treat it like a regular one. I agree somewhat buy not entirely. Of course I don't believe you should blow it all on yourself either. Since we will be getting ours next Friday I thought I would break down what I plan to do with it.

1. Take out 2 weeks expenses. Don't forget to take money out of the check that you will actually need during the two week period. Lunch and gas comes to mind. These are expenses that I pull every two weeks for my husband. (Mine come out monthly)

2. Sock it away. We have sub accounts in our savings for things like annual expenses, irregular expenses etc. I am going to make an extra payment into each of these accounts with this check. This means that this month instead of one payment we are making two. (You could do this with your mortgage too!)

3. Energy upgrades. I am going to buy a few things to make our home more energy efficient. Now is the perfect time to do it as we move out of the cool season and into the COLD season! We need some weatherstripping on a few of our windows. That is one thing I will be doing.

4. Christmas. I still have not started consistently saving for Christmas. My husband gets a reliable bonus check which we normally use. We will add any left over to that. Never fear!!! I am not planning on using it to over spend. We are going to make a Christmas budget and stick to it. Any extra money we have will go to debt repayment.

So, how do you feel about the "extra check"? Will you spend yours? Save it? Ignore it? I would love to know.

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