4 weekly vs monthly salary - help!

Humphrey10

daska wrote: »

Possibly this is a scenario where only those who have lived it appreciate the pitfalls LOL. You have to be right on top of what bills are due out when, it really isn't a case of needing to be undisciplined to make a right pigs ear of it!

I've 'lived it', I'm currently paid 4 weekly, it doesn't cause any problems. There's always money in my current account to pay the bills, because I'm too lazy to move any spare money into a savings account. But if I was organised enough to put everything into savings accounts, I imagine I'd be organised enough to keep track of when the direct debits come out of my account.

daska

jrawle wrote: »

While it's true I haven't "lived it", what you state is mathematically untrue. Suppose you have an account that receives £100 pay every four weeks, and pays bills of £100 on the 1st of every month. The balance sheet could look like this (sorry the formatting isn't brilliant; tables are one of the things this forum just doesn't do):

This assumes the first payment is on the same day, which is really the worst case scenario. You could start at any point in the table.

In fact, anyone paid like this is actually at an advantage over monthly-paid people, becasue often employers pay late if there's a weekend or bank holiday. With a 4-weekly salary, you gain a few extra days each month whch will cancel out any late payment due to non-working days (unless it's February, of course).

The only way this payment schedule fails is if the four-weekly payment isn't enough to cover your monthly bills, but in that case you are in trouble anyway.

Logically you're correct, but you're viewing it remotely rather than in the context of running a current a/c. I'm not bad with money, I'm not in debt, I can design whizzy spreadsheets and do PAYE, in other words I'm quite competent and organised but that it doesn't stop it being a nightmare at times.

meritaten

actually - it isnt MY accounting that is at fault - often its the companies taking thier payment out early which is at fault (which can happen with monthly DDs too). They are not supposed to do it - but they do! that is what I meant by payments becoming dangerously close to the payday! and if you dont keep a very close eye on your account and this happens, then you get into the nightmare trap of unauthorised overdraft payments and refused DD 'fines'. If you are sailing close to the wind every month then its easy to find yourself in deep trouble!

SEK_2

My DH gets paid 4 weekly and I'm paid on the last day of the month. This is the way we do it.

For example this month:

DH was paid on 16 March. His wages are then put a side and left untouched until the end of the month when I get paid.

We have a separate account for all direct debits.

On the last day of the month I have my wages and DH wages in our joint account. We have a standing order set up to transfer enough money to cover the direct debits from our joint account to the direct debit account on the 1st of every month. Whatever is left in the joint account is for general spends - kids, food, car etc...

One month a year DH gets 2 lots of wages - this is used for Xmas or a holiday or something else.

burnoutbabe

you just need a whole extra months worth of bill costs stuck into the bill account at start of the year, and then it will never actually be an issue.

(people saying "its like one months wages are a bonus" are missing the point, in that would normally be the "float" to keep the account in credit all year round.

Shelldean

You want to juggle some monies.... try this....

I dont work so no wages.
OH gets paid monthly anywhere between the 15th and 22nd of the mth. The date varies and we never know in advance exactly when his wages will appear in account. Tho after studying we've realised that boss man sets the ball rolling on the Thurs nearest the 15th. But this doesn't always work, but applies most months.
OH wages alone dont cover our out goings.
We're topped up with CTC and CB, these are paid 4 weekly, meaning their dates move every mth too.

The best was I found to solve it was to put all DD's after the latest OH could be paid and if the CTC or CB has already gone into the account it's not touched.

This works really well until bossman pays OH late and the wages didn't hit the account until the 24th one month. Luckly CTC was already in the account or we'd have been stuffed as our council tax bill comes out on 23rd ( the latest our council allows)

Still a huge headache ever month

penelopedee_2

We have fortnightly and monthly wages coming in and it's a complete nightmare.

The only way I cope with it is to move all the direct debits to come out the week after my monthly wage (just about covers them). This money always goes to the bills account. There are a couple of companies though that won't move DD's so .....

When I get paid fortnightly I put some in to top up the bills account (which then covers kids clothes etc as well).

I have a separate groceries and petrol account which I move a bit to (for the fortnight). I try and just do one grocery shop a week - which I do on-line and meal plan for. I start the on-line shop probably about 5 days before it's delivered so that I know again what will come out in advance or if I need to cut back a bit.

Then I hide some in a saving's account linked to the bills account so I can move things over urgently if I get caught short. (The rest goes into a proper savings account).

I also have a month calender with every DD bill etc on it, on the appropriate day, plus things like scouts subs, dinner money payments, Christmas/birthday savings, haircuts ... This means I always know what is going to disappear from my account, on what day - without having to think too much about it!

I check my bank accounts most days on-line. I can move the money from account to account same day if I need to.

DH and I have 'cash' pocket money each week which is left over from the budget so we don't mess with the bank accounts (or get tempted to spend what isn't really there because it's due out the next day type of thing).

It is messy but the basic month calendar is really useful. It helps to reduce nasty suprises.