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That time of year.....beware the spending trap!
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EssexHebridean
Posts: 24,424 Forumite
Nope, not the usual Christmas spends - if you don't have those under control by now, it's rather too late.
I'm talking about the "December pay trap" - you know the one, rather than being paid on the last day of the month, or the 28th, "because it's Christmas" your company set up the pay run early - anything from 10 days early. The money lands in your bank account, and you start spending....regardless of the fact that usually, you'd manage for another week on the previous month's pay. And then, come mid January, the money has run out. Sound familiar?
Rather than thinking "Oh good, I've got paid early" I'm going to urge you to pick up that pay, and ditch it into a savings account. one that you don't have a debit card for. And then ignore it, until 31st December, when you can transfer it back to your current account to meet your commitments for the month. Remember, nobody will be taking Direct Debits early - you still don't NEED that money until 1st January, so put it out of temptation's way.
To put things into perspective - if you get paid on the 22nd, rather than the 30th, and you start dipping into it immediately - that "month's" pay then has to stretch nearly 6 weeks. And we all know that's not going to happen, which is when the credit cards come out again.
Over the last few years on this forum we have seen SO many people in a panic in January for this very reason. Don't let yourself be one of them.
Wishing all DFW'ers a very Merry Christmas, and a happy and successful 2017! :santa2::xmastree::xmassign:
I'm talking about the "December pay trap" - you know the one, rather than being paid on the last day of the month, or the 28th, "because it's Christmas" your company set up the pay run early - anything from 10 days early. The money lands in your bank account, and you start spending....regardless of the fact that usually, you'd manage for another week on the previous month's pay. And then, come mid January, the money has run out. Sound familiar?
Rather than thinking "Oh good, I've got paid early" I'm going to urge you to pick up that pay, and ditch it into a savings account. one that you don't have a debit card for. And then ignore it, until 31st December, when you can transfer it back to your current account to meet your commitments for the month. Remember, nobody will be taking Direct Debits early - you still don't NEED that money until 1st January, so put it out of temptation's way.
To put things into perspective - if you get paid on the 22nd, rather than the 30th, and you start dipping into it immediately - that "month's" pay then has to stretch nearly 6 weeks. And we all know that's not going to happen, which is when the credit cards come out again.
Over the last few years on this forum we have seen SO many people in a panic in January for this very reason. Don't let yourself be one of them.
Wishing all DFW'ers a very Merry Christmas, and a happy and successful 2017! :santa2::xmastree::xmassign:
🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25
SOA CALCULATOR (for DFW newbies): SOA Calculator
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Comments
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Good advice Essex !!
I only get paid 3 days early at Christmas, our company are very tight lol
Stopped the Christmas bonus to, ............sighs and walks away ................!!
On another tangent, your photographs are outstanding, looked at your facebook page, very impressive indeed !!!I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
sourcrates wrote: »Good advice Essex !!
I only get paid 3 days early at Christmas, our company are very tight lol
Stopped the Christmas bonus to, ............sighs and walks away ................!!
On another tangent, your photographs are outstanding, looked at your facebook page, very impressive indeed !!!
Aww thank you! I must get some more on there - I love taking them, and have been really fortunate to have got the sort of access I have for the groundshots, in particular!
Fingers crossed for the Christmas bonus being alive and well here, but we'll see...!🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
This frustrates me so much. Having a late January birthday sucks big time
Debt free Feb 2021 🎉0 -
My husband gets his a week early each year but this year will get an extra weeks pay so I have budgeted getting it early since he'll have 5 weeks pay to last 5 weeks it should work out better than last year.0
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Fab idea, Ive just done this. Been paid today but usually get paid the 28th (almost 2 weeks early!). I done exactly that last year and spent a lot of it on Christmas then really struggled in January. Not this year. Thanks.
Just have to remember to transfer it back on the 27th now lolDebt busting start date 08/08/18 - total debt £33,222.32 :eek::eek: Debt now £31,352.56 - Paid £1,869.76 - 5.63% @ 05/10/20180 -
I agree with this, I have been paid yesterday and normally get paid on the 25th, I have set up the funds to pay the 25th bills, and the rest has been squirrelled away, till the banks start reducing their interest/cash back and ill move it again....
Happy chrimbo to all :-)I’m a Forum Ambassador and I support the Forum Team on the Banking & Borrowing, and Reduce Debt & Boost Income boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySaving Expert.Save 12k in 2023 #58 Total (£4500.00) £2500.00/£5000 = 50.00%Sealed Pot Challenge ~17 #24 Total (£55.00) £0.00/£500 = 0.00%Xmas 2023 £1 a Day #13 Total (£85.00) £344.00/£365 = 94.24%Virtual Sealed Pot #1 Total (£500) £550.00/£500 = 110.00%£2 Savers Club 2023 #17 Total (£25.00) £45/£300 = 15.00%The 365 1p Challenge 2023 #7 Total £656.19/£667.95 = 98.23%Total £4095.19/£7332.95 = 55.84%0 -
It works ok for me as our large NHS hospital doesn't pay early which makes January ok 0
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Alwaysskint2016 wrote: »Fab idea, Ive just done this. Been paid today but usually get paid the 28th (almost 2 weeks early!). I done exactly that last year and spent a lot of it on Christmas then really struggled in January. Not this year. Thanks.
Just have to remember to transfer it back on the 27th now lol
If you're worried you might forget, set it up as an automated transfer maybe?🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
We both get paid on the 25th, so our budget runs from then. We will be getting paid on Monday, so will transfer our wages out of the main account into a savings account. It will then be transferred back on Christmas day or Boxing day, ready for the DDs that come out just after.
Been doing it this way for years now and is so much less stressful.0 -
I don't get paid until the last working day of the month regardless of the season. So November's salary has to cover Christmas . But good advice for those who get paid early.0
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