Frugal Tip #6 - 10 month vs. 12 month pay schedule

It is about that time of the year when you decide if you want to receive your paycheck spread over the traditional 10 month schedule or if you would like to stretch your pay over 12 months (if your school offers this option). Personally, I enjoy spreading my money out over 12 months so that I do not have to think about putting some of it away to "survive" the summer months. Plus, I like feeling like I am getting paid to have a summer vacation! ha!

While you are contemplating filling out that 12 month schedule form, I urge you to consider rethinking your choice! Why? Well, you can get a few added perks by enrolling in your own savings program. The school system takes a portion of your paycheck and essentially places it in a savings account until the summer. The problem with this? You can do the same thing and get paid interest!

Check out your state employee's bank and see if they offer a Summer Cash Program for teachers. This program allows teachers to automatically have a portion of their paycheck placed into a savings account where it earns interest (currently 3.25%APY in NC). No, this is not a whole lot; however, you could earn an extra hundred dollars or so. It is like free money that your School System is currently earning and keeping on your behalf! Why not do the 15 minutes of work, and earn a little free cash? You will still get the added benefits of stretching your paycheck over 12 months, but you will be keeping the interest - not your school system.

During these difficult economic times, who couldn't use a little extra money? Look up your State Employee's Credit Union and look for a Summer Cash Program. Get enrolled so you can start making money for next summer!