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Extra Paychecks This Year

February 12th, 2007 at 10:57 am

I know it's only February, but I'm starting to think ahead to June when DH will get one of two 'extra' paychecks this year.

Our spending plan is based on 24 paychecks per year however DH receives 26 paychecks.

So what to do with this extra paycheck in June...

pay down the credit line
pay off the Visa
put it in our emerg fund
use part of it for Christmas gifts instead of saving every pay period towards them
vacation (instead of saving incrementally as above)

I want to do the best thing financially for us.

Paying off debt is of course important.

Freeing up some cash every pay period (by stopping the incremental holiday/vacation/or other incremental savings) would also relieve some of the financial pinch we feel after bills have been paid.

1 Responses to “Extra Paychecks This Year”

  1. tinapbeana Says:

    well, if it were me i'd use it to pay off the visa, for a couple of reasons:

    1. a debt paid off! woohoo!!!
    2. you can then take the money you were paying to visa and snowball it towards the next debt in line
    3. if things are particularly tight one month, you'll have one less actual bill that absolutely has to be paid.

    it's might be tempting to beef up the vacation or gift fund, but if that same tight month comes along, the visa bill will still be there needing to be paid, whereas the vacation/gift funds are nicities that could be cut if need be.

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