A Glimmer of Light?

My employer pays its employees once every two weeks. This mostly works out to be twice a month, but twice a year, we get three paychecks in one month.

During two-check months, it works out very cleanly: The first check goes to bills -- credit cards, utilities, groceries, and gas; whatever is left is spending money, but to be honest, there isn't much left. The second check, the one that comes later in the month, is for rent. There's usually a little left, but it's an unremarkable amount.

So three-check months are something we look forward to. But I have learned that as much as I'd like to treat that third check as an "extra" check, I can't. Years ago, when I treated it as an extra check and bought some items I'd been wanting, I realized during the lag time between that extra check and the next first check that my car payment was due, as were a couple other bills. I had to shuffle some money from my savings account to cover some bills. And back then, there wasn't a lot of savings, so it hurt.

Since then I've learned to treat every paycheck according to the current schedule: One check for bills; one check for rent. Do not deviate. The benefit of those two extra checks will show up later.

That benefit has happened for me this month. My next paycheck will be that extra check. And because I did not deviate from my schedule last year, I'm far enough ahead that this next paycheck will actually feel like an extra check. According to the calendar, there are no bills that are due between that extra check and the next first check of the month. So while I do have to pay a couple bills from this extra check, a considerable portion of it can -- and will -- go into my savings account.

A word about saving: My parents and I are going on a cruise later this year. While I don't have to pay for the trip (thankfully, my parents are treating me!), I do have to cover my spending money. So I'm trying to sock away at least $500 for that. That is, an extra $500. I don't want to use any of my regular savings for this. Also, I'm working to create the all-important fund for incidentals. The goal is to save an extra $800 for that fund.

I'd been planning to use my tax refund to cover some of that, but now, with things working out with the extra paycheck, I can put a lot of that refund into my regular savings. I know I could use some to pay down the debt, but I really want to have a decent savings balance when my debt is paid off.

So there's a glimmer of light shining at the end of this dark debt tunnel. This year is starting off on the right foot.

Rockin'.