Planning Ahead: How to Prepare for Your Three-Paycheck Months in 2023

Many Americans are setting financial goals for the year ahead. An extra paycheck could help them reach their goals.

If you are a W-2 employee and get paid biweekly, there are two months out of the year when you will receive three paychecks instead of the usual two. This can be a nice bonus, but it can also throw off your budget if you're not prepared for it.

The number of months in which you receive three paychecks depends on your pay schedule.

If you're looking to get out of holiday debt, there are a few strategies you can use. You can start by creating a budget and sticking to it. You can also try to negotiate a better salary so you have more money to work with. Finally, make sure you're staying on top of your finances so you can avoid getting into debt in the future.

If your first paycheck in 2023 falls on a Friday, then your three-paycheck months will be March and September.

If your first paycheck in 2023 is on a Friday, then your three-paycheck months will be in June and December.

According to Winnie Sun, co-founder and managing director of Sun Group Wealth Partners, based in Irvine, California, and a member of CNBC’s Advisor Council, taking home three paychecks in one month can give your financial standing a boost.

"If you have credit card debt, it's important to pay it off as soon as possible," she advised. With day-to-day expenses continuing to rise, more and more Americans are taking on debt. At the same time, annual percentage rates are also increasing, making it more expensive to carry a balance.

After that, consider stashing an extra paycheck in long-term savings, such as a Roth individual retirement account. A Roth has the added advantage of allowing account holders to withdraw their contributions at any time without taxes or penalties.

Even if you decide to use some of your cash for a vacation or something fun, that's OK - as long as you still save some of it. This is according to Sun.

CFP Douglas Boneparth, president of Bone Fide Wealth in New York and member of CNBC's Advisor Council, believes that now is a good time to have extra cash on hand due to economic uncertainty.

"If you're able to take care of that, it's a great opportunity to keep investing, whether that means adding to your portfolio or increasing your retirement contribution," he said.

Contributions to a traditional workplace 401(k) plan are pretax, so the more you put in, the lower your taxable income. This can be a great way to save for retirement, especially if your company offers an employer match.

Rather than budgeting from paycheck to paycheck, it's better to consider your income over the course of the year and view your cash flow on a monthly basis, Boneparth advised. This can help smooth out the highs and lows and make it easier to save money each month.

He said that the "bonus" paycheck is really an illusion.