![]() ![]() It’s a neat psychological trick - pretending the money doesn’t exist may help curb spending. If you set a monthly budget based on that amount, you live on less than you’re actually earning each month. In the example scenario, you tell yourself that you’re making $4000/month, which is true for 10 months a year. If you budget as if you were still getting two paychecks each month, you live on less each month. Not exactly rocket science, but there’s an opportunity here to trick your brain. Same amount of money over more paychecks = less money per paycheck. Bi-weekly paychecks for the same year would be $52K/26 = $2000 per pay period. It’s not exactly free money you end up getting paid the same rate annually, just split over more paychecks.Įxample: if you’re making $52,000/year before taxes, on a twice-monthly paycheck, your gross paycheck is for $52K/24 = $2167 per pay period. Instead of getting paid twice a month (24 paychecks/year), you get paid every other week (26 paychecks/year). While two paychecks each month is still standard for many people, some employers pay bi-weekly. Summertime! And the living is easy - especially if you are in the Extra Paycheck Club, and you might be whether you want to be or not. ![]()
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