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“A lot of the time that happens is when we come in, we see it as extra time,” said Christine White, a certified financial planner at Canadian Currency Coach.
White said she usually sees two reactions from clients: those who don’t realize the coming salary and those who are excited about it.
Canadians who pay biweekly receive 26 paychecks in 12 months, meaning three paychecks will be earned in two months of the year.
This year, if your first Paycheque is received on Friday, January 3, the months of January and August will be your three seasons. If your first Paycheque is January 10, you will receive three Paycheques in May and October.
White believes it is important to have this money plan before you enter your bank account.
“If we know we’re going to have these two or three months and we have a plan, then we can make a conscious decision and have the will to spend money,” White said.
For Sara McCullough, she says she usually ignores two additional wages when building monthly budgets for clients.
“I base their income and expenses on two paychecks a month,” said McCullough, founder of WD Development certified financial planner.
Then, she researched what extra cash could do. She believes it may fall into one of four categories: catching up, upcoming bills, breathing space and future buffering.
The additional salary may be an opportunity for many Canadians to catch up on paying their credit card bills or credit lines, she said.
McCullough said it can also be used as a buffer in the bank.
“It may not be a complete bonus,” she said. “There is a known fee.
“In this case, your best bet is to keep it in your account,” McCullo added.
If someone has mastered their catch-up and cash mat needs, the extra money opens up space for the space to succeed.
“The breathing room is when you don’t take on high interest debt, and the other months are running smoothly,” McCullow said.
For example, this could be an opportunity for people to build an emergency fund, or supplement money for home repairs, vacations or next car.
Then there is the “future” category, McCullough said.
“If (if) you don’t see any huge expenses you need for money, then we can look at the TFSA or the first home savings account contribution,” she said.
White said it might also be an opportunity for Canadians looking to save for a down payment, but was caught in a Paycheque-Paycheque cycle. She recommends putting that extra cash into savings twice a year to help build eggs.
But this is not always about financial goals and debt.
“We have a lot of competitive demands on our money, or we want to do a lot of things at the same time,” White said.
She often tells clients to divide the extra salary into several goals – for example, a third debt, a third of fun, and a third of investment.
“Then, you feel a little responsible, but a little joy,” White said.
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Last modified: July 31, 2025
