Paid on variable days??

Shelldean

I am going to try and respond to everyone so this WILL be long please bare with me.
Basically this is down to us as we have no safety net inplace. Without going into details, there was a personal crisis about two yrs ago, which resulted in lots of money being spent... most foolishly. This has placed us in debt. Normally we manage just fine, hubby has been paid this way for at least five yrs. But we've sussed money ALWAYS arrives between 15 & 22. This is the first time in all those yrs it's gone outside those dates. If boss man kept to usual paying scheme we'd have been fine as usual.

Naf wrote: »

I have a suggestion that helps me with payments, budgeting etc.
For a start I pay everything by standing order where possible; on an income where money is tight, the slightest error by the company can send your whole month's finances right up the swanney, plus you have absolute control over payment date. All utility companies allow you to pay this way, as do most phone/broadband/mobile companies. Possibly see if you can get a small overdraft while you move everything to the start of them month, as previously suggested, so whenever the wages hit the account, stuff won't be missed. A trick I've learned when doing this is to disregard any discounts you get (£5/£10 per month isn't going to make a huge difference) and work out what your actual payments should be and add roughly 10%. For example, I have 3 phone contracts; £40, £35, £40 per month, with £15 discounts each month. So that totals £115 each month, less discount. I actually pay £130 per month to the account, covering any overuse and always adding a little credit to the bill. With my utilities I have a spreadsheet calculating my actual usage and cost, I work out the figure for a full 12 months, round to a nice multiple of 10 and divide out over 10 months. This means that; 1. I'm always in a little credit, and 2. that I have 2 payment free months in the year, to take either when I need them or just November/December for Christmas if I don't have to use them before then (or, if you have arrears, just keep paying and those two months will make a much larger dent in them).
Working out my finances this way (and using a good budgeting tool on excel) doesn't feel like I'm losing out compared to before starting, I actually feel like I'm in more control. Also, whenever making payment arrangements for arrears, decide what you can afford to pay, then make an offer for 10-20% less (or just £20), but still pay the full amount you intended. This one just looks good and they're more likely to be lenient if you need to adjust the plan, or just miss a payment.

Yes we do need to do something, but it has taken me two yrs to get things back on track am reluctant to upset the applecart so to speak. And a small overdraft?? would love one, ours is huge!

jazzyman01 wrote: »

Your OH should have a minimum of a Written Statement of Terms in that he should have the actual pay date which usually is worded "on or before xx".

If your OH is having problems, the same is likely to apply to all staff. Could they not get together and request that he commits to a date by which payment is in the bank account?

He could also go in and have a chat, state that it is causing problems and that he is incurring additional costs because of the eratic payment of the wages.

Yes this is correct I spoke with ACAS and hubby should have it written down but as his contract has not been updated however as this way of paying has been in place for so long it's classed as a contract.
Not a lot hubby can do as the wages have actually arrived just later than we presumed. Hubby has spoken to boss as have others... it was water off a ducks back.
we've not actually had any cost YET!!! but may do if erratic payment scheme continues.

getmore4less wrote: »

But the bosses solution(if he realizes) is on or before the end of the month and nothing changes.

The problem is not the pay it's the financial planning and living too close to the income.

If you change mind set to any income in one month is to pay for next month spends the problem goes away, it may take a while to get there but once there problems are solved.

Make all DD payments the minimum possible no overpayments on anything that is done when the money is definately avaialble.

When the pay arives you can plan the next months spends and any surplus can go to paying off debts or savings.

Rather than moving things to the end of the month bring them back to the begining of the month, start with the smaller ones if the big ones are too much.
over time they will all be there.

I think most people could achieve this in a year or less if they had the will and mind set to do it.
THere should allready be some allowance for the annual bills anyway so this can be used to help plan the cash flow.

Again yes we are living too close to the wire, but aren't currently in postion to change this. I will be looking at ways of shifting the DD's but am dreading as last time it was a night mare.
Acas say that as current paying scheme has been in place it now forms an unwritten contract, so in theory bossman can't change to end of mth. well thats the theory!!!
Edited to add we have no annual bills everything is paid monthly. At least I can't think of any annual bills

Shelldean

getmore4less wrote: »

So he decided the 19th was closer than the 12th, so if the 15 is Sun or later he uses the following thurs, Sat or before the previous

Looking at the calendar.

your pay days will be

June 21st
July 19st
Aug 23rd
Sept 20th
Oct 18th
Nov 22nd
Dec 20th

I would be carefull in Aug, Nov payment may be close.

I would also check Oct based on JAn payment you should be OK but
Oct the 15th is a Sat so could be the following thurs making the tues the 25th

Yes thats basically what he did this month, not sure why.
Have checked Jan and wages were received on Tues 18th, so once again in theory Oct will be fine.
However August worries me slightly.
Will have to try and prepare a buffer zone for August I think, esp as I'm away that week so won't have such easy access to bank a/c

getmore4less

we have no annual bills everything is paid monthly. At least I can't think of any annual bills

Check any that can be paid annualy often cheaper that way.
the two I have come across are car and house insurance
car tax, perhaps you don't have a car.

Shelldean

I also found a brief letter from company to OH from when they was switching from cash weekly to into bank monthly. It states he will be paid 2 weeks in arrears and 2 in advance. No actual date was mentioned though, it was very brief!!!!
Apprently he can not change it to 4 weeks in arrears without informing his staff of the change, (ACAS) so he can't just move it to the end of the month can he??? He's got to warn them first?

Shelldean

getmore4less wrote: »

we have no annual bills everything is paid monthly. At least I can't think of any annual bills

Check any that can be paid annualy often cheaper that way.
the two I have come across are car and house insurance
car tax, perhaps you don't have a car.

yes we have a car and yes it's paid monthly. It is due for renewal in June, but last yr it was only a very slight saving to pay annual rather than monthly. So we opted for monthly as easier to budget for.

PLEASE PLEASE don't preach but currently no house ins.:(

Shelldean

I'd like to say thanks to all who've responded.:T

This month we've been lucky and didn't get any bank charges.
I was just concerned that if it happened again we'd not be so lucky.
I was really hoping there was some way we could make bossman say he was going to pay us on xx of the month ( even if it was the end of the mth) So we'd have a fixed pay day each mth to work round.
It appears we can't do that.
We're not happy with current pay situation being so variable, but until this month thought we'd figured it out and was working round it.
May's pay has thrown us a curved ball, one we need to be aware may happen again.

I do agree that some of it is down to our own finanical situation, and we ARE working on dealing with it, but we're not quite there just yet.

Will keep on chipping away and we'll get there one day soon I hope.


Thanks again:D

getmore4less

I was really hoping there was some way we could make bossman say he was going to pay us on xx of the month ( even if it was the end of the mth) So we'd have a fixed pay day each mth to work round.

I understand your issue but you can solve it without the boss changing anything.

If you would be happy with a fixed date of the end of the month then do it yourself and assume that is the date you get paid and plan around that.


One thing to consider with the current pay date is the work period that the pay is for.

If it is for the month and paid early you should really move to a spend next month cycle, if you ever have to change jobs it could be a big issue.

if it it is for work period 15th-15th then less of an issue BUT could still cause problems on change of jobs.

Savvy_Sue

Naf wrote: »

Also, whenever making payment arrangements for arrears, decide what you can afford to pay, then make an offer for 10-20% less (or just £20), but still pay the full amount you intended. This one just looks good and they're more likely to be lenient if you need to adjust the plan, or just miss a payment.

This is not always the best idea: in fact with some payment arrangements it is a very BAD idea. Notably if there are rent arrears payable under a court order - do NOT overpay and then skip a month! the landlord does NOT have to be lenient, nor do they have to have regard to the fact that you've been overpaying.

You have broken the agreement by overpaying, so if you then break it by underpaying, you're in breach and may find yourself back in court.

In general I'd say pay what's agreed, each month, every month, without fail, and if there is ever the odd month where you have a little bit to spare, put it in a savings account ready for the not so odd month where you are short (because the children needed shoes, or the washing machine died, or whatever).