By Ritika Dubey
“What occurs a number of time is when we’ve this additional are available, we deal with it as additional,” mentioned Christine White, an authorized monetary planner with Cash Coaches Canada.
White mentioned she sometimes sees two reactions from her shoppers: those that didn’t understand an additional paycheque was coming, and those that get enthusiastic about it.
Canadians who receives a commission biweekly obtain 26 paycheques unfold throughout 12 months, which suggests there are two months within the yr when they may get three paycheques.
This yr, in case your first paycheque was acquired on Friday, Jan. 3, the months of January and August will probably be your three-payday months. In case your first paycheque was Jan. 10, you’ll obtain three paycheques in Could and October.
White suggests it’s essential to have a plan for the cash earlier than it hits your checking account.
“If we all know we’re going to have these two three-pay months and we’ve a plan for them, then we will resolve consciously and with intention what we need to spend it on,” White mentioned.
For Sara McCullough, she says she usually ignores the 2 additional paycheques when constructing month-to-month budgets for her shoppers.
“I base their earnings and bills on two paycheques a month,” mentioned McCullough, an authorized monetary planner and founding father of WD Improvement.
Then, she appears to be like into what might be accomplished with the extra money. In her opinion, it may go underneath one in every of 4 classes: catch-up, buffer for upcoming payments, respiratory room and future you.
The additional paycheque might be a chance for a lot of Canadians to atone for paying down bank card payments or a line of credit score, she mentioned.
McCullough mentioned it may additionally simply function a buffer quantity within the financial institution.
“This may not be whole bonus cash,” she mentioned. “There’s a identified expense arising.
“Your only option in that case is to let it keep in your account,” McCullough added.
If somebody is already forward on their catch-up and money cushion wants, the additional cash opens up room for getting forward.
“The get-ahead respiratory room is whenever you’re not carrying high-interest debt, and your different months are functioning easily,” McCullough mentioned.
This might be an opportunity for individuals to construct up their emergency fund, or replenish quantities put aside for home repairs, holidays or their subsequent car, for instance.
Then comes the “future you” class, McCullough mentioned.
“(If) you don’t see any large expense that you’d want cash for, then we will have a look at a TFSA or first residence financial savings account contribution,” she mentioned.
White mentioned this is also a chance for Canadians hoping to construct up financial savings for a down cost however caught within the paycheque-to-paycheque cycle. She prompt placing that additional money into financial savings twice a yr robotically — serving to construct that nest egg.
But it surely doesn’t all the time should be tied to monetary objectives and debt.
“Now we have a number of competing calls for for our cash, or a number of issues we need to do on the similar time,” White mentioned.
She typically tells her shoppers to divide the additional paycheque throughout a number of objectives — a 3rd for debt, a 3rd to have enjoyable and a 3rd for investing, for instance.
“Then, you’re feeling just a little bit accountable, but additionally just a little little bit of pleasure from it,” White mentioned.
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Final modified: July 31, 2025