Is a Three Paycheck Month Really Better?

12.10.06 | Money | 0 Comments | by junger

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If you've got a steady bi-weekly paycheck, and keep a budget (if you don't, you should be), then you know what I'm talking about when I say that the three Friday months are the best.

One extra paycheck that month? Score.

Not everyone has this — if you get paid on the same days every month (1st and 15th, for example), then you don't get the "bonus," if you will.

But is it really a bonus? I'm not 100% sure.

Say you're a salaried worker, so you're going to make X amount of dollars over the year no matter what. Does it make more sense to get 26 paychecks or 28?

With 26, your base salary will be higher, so you'll have more taxes to pay off the top (even though it will even out over the year). With 28, your base salary will be lower, and you'll have to wait for those extra dollars.

It's almost like how many exemptions you take on your W2 — if you don't take many, you'll likely get some cash back after April 15. But if you take a bunch, you'll have "extra" money to invest or put into an online savings account.

A three paycheck month may seem like a bonus, but I'm starting to wonder if it really is.

Is it?

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