Changing from monthly to fortnightly pay and losing money

getmore4less

change your budgeting to annual far better than monthly and do a cash flow analysis to see where the low high points are and adjust bills spending if the low goes negative.

No one really has all there spends/payments monthly anyway.

Some bills will be monthly but the rest of the cycles tend to be weekly(day to day shopping) or annual(eg insurance)


another good cash flow adjuster is a CC paid off in full or if you can get one a 0% card where you can smooth the cashflow over a much longer period.

the biggest complaint you here from people going from weekly to monthly is 4 month a year have 5 weekends how am I supposed to budget for that.

surreysaver

chrisw99 wrote: »

We are effectively losing a weeks pay in October as we move to being paid 1 week in arrears. We will only get it back when we leave or retire, which could be in another 20 years time.

No. You get that week's pay in November. Then in March you get six weeks' pay, and it starts again. A week in hand or arrears doesn't mean you get it when you leave - it means you get it after you've worked it.

paddyrg

surreysaver wrote: »

No. You get that week's pay in November. Then in March you get six weeks' pay, and it starts again. A week in hand or arrears doesn't mean you get it when you leave - it means you get it after you've worked it.

I think they are worried about it being a rolling week in arrears, ie their last week of work is paid a week later.

Fact is, this is really very, very normal stuff, and not worth panicking over. And if we're talking a salary of £36-48k, maybe this can be your wake-up call to tighten your belts until you have maybe a £3-5k buffer, or you're always going to be vulnerable to an unexpected cost or cash flow disruption.

theoretica

While you have less money coming into your bank account in November, it will also be coming in earlier in the month on average, which should be useful for an overdraft.

Some bills will change to fortnightly if you ask, which might be helpful too.

sangie595

Th, I would be more concerned about "why" anyway! For most people the big issue is moving to monthly pay, not from it. And one of the reasons employers move to monthly is because it is easier and cheaper to process. Why would an employer move to something that is more expensive to process? The only good reason I can think of is cash flow. And that would be a worrying reason!

Doshwaster

sangie595 wrote: »

Th, I would be more concerned about "why" anyway! For most people the big issue is moving to monthly pay, not from it. And one of the reasons employers move to monthly is because it is easier and cheaper to process. Why would an employer move to something that is more expensive to process? The only good reason I can think of is cash flow. And that would be a worrying reason!

I would be suspicious too. Twice-monthly pay is quite common in the US but very rare here.

eamon

Apparently its common in Oz as well. But I would be suspicious as well. I get paid 13 times per year and that used to cause me problems with DD's etc until I cottoned on. Didn't go out for 6 months or so until the overdraft vanished and a surplus was in place. To the OP you will adapt.

chrisw99

Doshwaster wrote: »

I would be suspicious too. Twice-monthly pay is quite common in the US but very rare here.

We are a US company, something like 30,000 employees over there but only 5000 here, and another 60000 worldwide. They want everybody on the same payroll system.

sangie595

chrisw99 wrote: »

We are a US company, something like 30,000 employees over there but only 5000 here, and another 60000 worldwide. They want everybody on the same payroll system.

Fair enough. But look at it this way. They can afford to place 5,000 staff anywhere else in the world and have less problems with tight employment legislation. So they aren't going to change for a few UK employees.

DaisyNelson

You should also consider that by being paid every 14 days, you'll get paid an extra day when it's a leap year. For those paid 1/12 of annual salary per month there is no extra allowance when there's an additional working day in the year. You'll be better off!