What is the Extra Paycheck Debt Payoff Plan, you ask? Well, the first question is, what is the extra paycheck?
Like most people, I get paid every other week. This works out as two paychecks per month. Multiply that by 12 and you can expect to get 24 paychecks a year. The first paycheck of the month generally goes to Student Loans, the collection agency I am paying off an old Credit Card, and my utilities. The second paycheck goes to rent, my credit card and my cell phone. There are some exceptions (like my Sister's wedding) that throw the system off course, but mostly that's the way the cookie crumbles.
But, wait a minute? There are 52 weeks in the year, you say? So, shouldn't I be getting 26 paychecks, not 24?
The answer is yes, you do. Twice a year a glorious occasion happens called The Extra Paycheck. It should be celebrated. There should be an Extra Paycheck store where you can buy greeting cards saying "Have fun with some extra cash, With Love, Your Job!"
The last time I received an Extra Paycheck was in April. This was also the month I received my $600 President Bush Money and yet, because I used to be a complete Money Moron, I had NOTHING to show for it. In fact, I think I bounced my rent for the month of May. That month and the financial damage that was incurred was really my Come to Jesus Moment.
But what a difference six months can make. The month of October is a three paycheck month for me! And starting next week, I am devising a plan to use the "extra" money to pay off some annoying debt as well as attend an out-of-town wedding. Here is a rough sketch of the plan:
Paycheck #1 - 9/17
500 - airfare (est.)
50 - Savings (projected balance = $100)
Paycheck #2 - 10/1
200 - Boyfriend Debt ($145 remaining)
50 - Savings (projected balance = $150)
Paycheck #3 - 10/15 (The Extra Paycheck)
445 - Credit Card Debt (projected balance = $0)
45 - Boyfriend Debt ($100 remaining)
50 - Savings (projected balance = $200)
Paycheck #4 - 10/29
100 - Boyfriend Debt ($0 remaining)
Yes, that's right, I plan to celebrate Halloween with zero credit card debt, a fully paid trip to a Destination Wedding, and a happy Boyfriend. Here's hoping I can pull it off!