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  • FIRST POST
    • ouseyr
    • By ouseyr 11th Nov 17, 7:29 AM
    • 19Posts
    • 6Thanks
    ouseyr
    Beware the day after pay day!
    • #1
    • 11th Nov 17, 7:29 AM
    Beware the day after pay day! 11th Nov 17 at 7:29 AM
    Day after payday – All direct debits have gone out and I’ve still got £1,400 to spend, whoop whoop! Need to hold back £500 for shopping and stuff but still easily enough headroom for me to go online and order those snazzy new £300 wheels for the road bike – reduced from £450! Here we are, proceed to payment and CLICK!, good times!

    Payday + 6 – Ouch forgot about the TV licence renewal, oh well, just need to tighten the belt a bit and everything will be fine and dandy.
    Payday + 11 – “But I thought you’d already paid the final instalment of her school trip!”
    Payday + 16 – “Yeah, yeah I know his birthdays next Friday and the present needs to be sent to Australia”
    Payday + 21 – “Well at least you missed the cat love, I’ll take it down to Quickfix and get two new tyres......ahh gonna need a new exhaust as well”
    Payday + 26 – Oh Christ, I forgot I paid for that on the credit card.

    Sound familiar? It represents my previous August when I ended up stratospherically over my overdraft limit with a £20 charge and a raft of daily interest payments as the cherry on top of a thoroughly non economic cake of a month. As a qualified accountant I really should know better, but somehow I regularly fall victim to a potent ‘payday + 1’ cocktail of selective creditor recall, frugality aversion – aka ‘L’Oreal!’ syndrome – and staggeringly unrealistic optimism that nothing will break/crash/run out/disappear in the month ahead.

    There is thankfully a readily available solution in addition to the blindingly obvious one of paying as many things as possible by direct debit on payday + 1. This simply involves only having a payday + 1 mentality on payday – 1 if you follow. So rather than pressing CLICK on those super sexy slim-line bike wheels on June 2nd, I now hold off until the evening of June 29th, when if, astonishingly, I still have £300 in the bank, I can proceed to payment safe in the knowledge that I’m only now 4 hours away from the next ‘now you see it now you don’t’ pay cheque.

    If meanwhile I’m still in the money on the 29th but with no super-essential spending requirements[1], then I transfer any residue into my ‘shit happens’ savings account, the name hopefully speaks for itself.

    So postpone your P + 1 mindset until P – 1 and rest assured that if nothing else your bank manger will still love you.

    https://whatmid-lifecrisis.blogspot.co.uk/
Page 1
    • Richey_
    • By Richey_ 11th Nov 17, 7:59 AM
    • 265 Posts
    • 303 Thanks
    Richey_
    • #2
    • 11th Nov 17, 7:59 AM
    • #2
    • 11th Nov 17, 7:59 AM
    What an awful amateurish rip off copy of Money Saving Expert

    • GothicStirling
    • By GothicStirling 11th Nov 17, 8:06 AM
    • 967 Posts
    • 717 Thanks
    GothicStirling
    • #3
    • 11th Nov 17, 8:06 AM
    • #3
    • 11th Nov 17, 8:06 AM
    How about putting 1k of it into savings, rather than blowing it? That would still leave you with £400 of disposable income. I know people earning £1200 a month with better financial sense than yourself.
    • datlex
    • By datlex 11th Nov 17, 12:49 PM
    • 1,409 Posts
    • 1,210 Thanks
    datlex
    • #4
    • 11th Nov 17, 12:49 PM
    • #4
    • 11th Nov 17, 12:49 PM
    Day after payday – All direct debits have gone out and I’ve still got £1,400 to spend, whoop whoop! Need to hold back £500 for shopping and stuff but still easily enough headroom for me to go online and order those snazzy new £300 wheels for the road bike – reduced from £450! Here we are, proceed to payment and CLICK!, good times!

    Payday + 6 – Ouch forgot about the TV licence renewal, oh well, just need to tighten the belt a bit and everything will be fine and dandy.
    Payday + 11 – “But I thought you’d already paid the final instalment of her school trip!”
    Payday + 16 – “Yeah, yeah I know his birthdays next Friday and the present needs to be sent to Australia”
    Payday + 21 – “Well at least you missed the cat love, I’ll take it down to Quickfix and get two new tyres......ahh gonna need a new exhaust as well”
    Payday + 26 – Oh Christ, I forgot I paid for that on the credit card.

    Sound familiar? It represents my previous August when I ended up stratospherically over my overdraft limit with a £20 charge and a raft of daily interest payments as the cherry on top of a thoroughly non economic cake of a month. As a qualified accountant I really should know better, but somehow I regularly fall victim to a potent ‘payday + 1’ cocktail of selective creditor recall, frugality aversion – aka ‘L’Oreal!’ syndrome – and staggeringly unrealistic optimism that nothing will break/crash/run out/disappear in the month ahead.

    There is thankfully a readily available solution in addition to the blindingly obvious one of paying as many things as possible by direct debit on payday + 1. This simply involves only having a payday + 1 mentality on payday – 1 if you follow. So rather than pressing CLICK on those super sexy slim-line bike wheels on June 2nd, I now hold off until the evening of June 29th, when if, astonishingly, I still have £300 in the bank, I can proceed to payment safe in the knowledge that I’m only now 4 hours away from the next ‘now you see it now you don’t’ pay cheque.

    If meanwhile I’m still in the money on the 29th but with no super-essential spending requirements[1], then I transfer any residue into my ‘shit happens’ savings account, the name hopefully speaks for itself.

    So postpone your P + 1 mindset until P – 1 and rest assured that if nothing else your bank manger will still love you.

    https://whatmid-lifecrisis.blogspot.co.uk/
    Originally posted by ouseyr
    There are much simpler strategies than this. This suggests you live month to month. Yo don't seem to remember when things are happening. e.g. the birthday, tv licence or keep a track on how much is paid. Prepare a budget and plan ahead.
    • tempus_fugit
    • By tempus_fugit 11th Nov 17, 12:54 PM
    • 293 Posts
    • 283 Thanks
    tempus_fugit
    • #5
    • 11th Nov 17, 12:54 PM
    • #5
    • 11th Nov 17, 12:54 PM
    OP, you sound like my OH. Whatever is in the bank is "to spend" and I tell her no, not necessarily it might be needed for future commitments or hey, shock horror, we could actually save it. The thing is to get out of the attitude that all money is available to spend and have a more long term outlook in things. And also of course, count future expenses when looking at how much is left over rather than just what is in the account now.
    Retired at age 56 after having "light bulb moment" due to reading MSE and it's forums. Have been converted to the "budget to zero" concept and use YNAB for all monthly budgeting and long term goals.
    • enthusiasticsaver
    • By enthusiasticsaver 11th Nov 17, 4:02 PM
    • 4,691 Posts
    • 8,808 Thanks
    enthusiasticsaver
    • #6
    • 11th Nov 17, 4:02 PM
    • #6
    • 11th Nov 17, 4:02 PM
    The secret is to treat payday as any other day and not an excuse to have a spend up.

    I still recall the day my DH said that a friend could not understand why he had so much money in his account and decided to treat himself to a new guitar or some new toy. A couple of days later his wife reminded him the mortgage had not been paid yet that month !!!

    Budget, plan and record is our strategy for money management. Spreadsheets record the direct debits and money is left in bills account. Two credit card bills to be paid off in full. One for food and fuel and the other for large purchases so sometimes that is not used at all in a month. Savings pots for car, house, holidays, presents (annual expenses) and long term savings. All entertainment paid from current account within budget usually by one cash withdrawal a week and personal spends directed to two separate accounts for me and DH.

    That has worked for us for more than 30 years. No debt beyond the mortgage and sometimes 0% deals. No unpaid bills. Sometimes money was tight but we still lived within budget so looked for more economical ways of doing things.
    4 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
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