3-Payday May: 4 Tips To Budget for Your Extra Paycheck

J. Arky

Wed, May 14, 2025, 9:01 AM 4 min read

Have you checked this month’s calendar closely? If not, you might want to go back and see that, indeed, May 2025 has five Fridays this year. Depending on what you do for a living and your employer’s payroll system, there’s a good chance that you could be seeing three paychecks this month if you get paid every other Friday.

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Before you celebrate too much and end up spending your additional earnings, take a moment to consider using the funds to help your budget, provide some financial cushioning, and put that extra dough towards making sure your money is in order.

GOBankingRates asked a few financial experts to weigh in on this potential three-payday May and what four tips you can use to budget for your extra paycheck.

Yes, it seems like a boring choice, but it is also the most practical and obvious option as well. If you are able to pay your expenses on two paychecks every month, having a third one means you have some flexibility to add to your savings account.

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“If you don’t need that money immediately, a short-term certificate of deposit (CD) might be something to consider,” said Anna Dosen, Minnesota branch banking market leader for U.S. Bank. “While terms will vary, some can have rates above 4%. Keep in mind that if you take money out of a CD before it matures, you will face an early withdrawal penalty.”

Stoy Hall, CEO and founder of Black Mammoth, said an extra pay check is the perfect time to build a “no excuse” wealth move into your budget. “Commit before it hits your account to a wealth play,” she added.

Hall suggested that with your additional earnings from May that you could launch or fund, not an emergency fund, but what he labeled as a “freedom fund.”

“This is for leaving that toxic job, investing in your business or taking a sabbatical to pivot your life,” Hall said. “Park the third paycheck in a high-yield savings account labeled ‘My Exit Strategy.'”

Hall proposed using the money to hire a career coach, pay for a certification or build out a website. “Freedom isn’t free — fund it now,” Hall added.

Are your credit card bills adding up? When was the last time you really put some money towards paying off a loan? In Dosen’s professional opinion now is the perfect opportunity to pay down some debt.