For some of us, it’s not just about the overall annual wage or salary that they are earning. Most workers prefer being paid once a fortnight. It gives them a manageable amount of money in an amount of time that doesn’t leave you strapped for cash at the end of the month. If you do get paid monthly, and are struggling with ways in which to use it wisely, here are a few tips to keep you on your feet.
The only realistic way to save money is to not spend it. Above everything else you do just before you get paid, make a budget. You need to know how much you need to set aside for bills, food, and mortgage before your money comes in. By allocating all your available funds into categories, you know exactly where your money is going to go. Recording it on a spread sheet also means that you can easily edit it month to month, if a special occasion or planned extra expense occurs.
Whatever your budget ends up being, make sure you stick to it.
Cash or debit?
The debit card is one of the most practical and safe ways to make payments. But, this does mean that you are 100% in control. Studies have shown that consumers are likely to spend more when paying with card than they are with cash, because cards don’t feel like ‘real’ money. Be aware though, that this is very real.
Unless you’re paying for your bills online, make all your payments in cash. If you’re going shopping and your food budget for that week is £60, withdraw £60 and only spend that. This ensures that you don’t go over budget because ‘a little bit won’t hurt’.
Save the last dregs
If you have money left over from your budget, then it means that you have some spare cash that you can do other things with. If the amount if substantial enough, you can reallocate your budget next month into a category that may need a little extra funding.
If the amount that you have left over would not contribute much to another category, then put the coins into a savings account, or even just a piggy bank. When it’s full, you can open it and see how much you’ve saved up. Physically putting money away into your savings will make you feel better about what you’re not spending and it acts as an emergency financial cushion if there’s unexpected expenditure one month.
Short term loans
Sometimes, what you get paid in a month just doesn’t cover everything. When it gets to winter, the heating goes on and the bills go up, as well as the food bill and the added cost of big winter coats. A short term loan that will boost your cash resources until the end of the month could be an answer. There are many types, but payday loans are the most popular. At a set cost, you can borrow money until an agreed date (your next payday usually) and then you pay it off. If you are not in debt and know you can afford it next month, getting a payday loan will not break the bank.
When you are paid monthly, it gets hard to see where your money goes sometimes. What’s most important is keeping a solid eye on every penny and making a note of it. By looking back on your spending, it means that you can easily see where you need to make any lifestyle changes.