Beware the December pay trap!

EssexHebridean

Thanks Peb - yes, it's now reached the point where the first people are likely to start encountering the early pay issue, as well, I imagine.

If you're reading this, are due to be paid (early) in the next few days, and are already thinking "well thank goodness, I'll now be able to buy X, Y and Z" please stop and think - that money now has to last you through to your next scheduled pay date - possibly as late as 31st January. If you spend some of it now, will it still meet your usual outgoings? Will it even cover your priority bills for next month? Do you actually need to purchase the items you're considering?

If you're desperate for early pay to meet essential outgoings, then please start a thread here on the debt-free wannabe board - you don't need to see yourself as someone who is "struggling with debt", and you certainly don't  need to have reached breaking point - it's actually easier if you get help before things get that bad - and above all far less stressful for you! There are members here who can help you budget better (or indeed learn to budget!), identify savings, and above all make sure that neither Christmas, nor the new year need to rely on credit cards. 

kimwp

Feels like this should be an annual item in the MSE weekly email!

EssexHebridean

It was featured in the email a couple of years ago - it's where my "Money Tipped" badge came from!  In all seriousness though I'd LOVE for it to be picked up more prominently and shouted from the rooftops - you only have to read back through the thread and the sheer number of folk who have said they'd never even thought of setting the money aside, and how helpful it is/has been, to get the value of the messaging, I think. 

redux

MrFrugalFever said:

A very valid point raised, interestingly, I had been planning to do this a few days ago as my pay moves from 29th to 22nd Dec. Luckily, my pay for this month that I received on 29th Nov will last me til end of Jan so I will put Decembers pay all in to savings and draw a little bit at the end of Jan

Also, in case there is any doubt, if transferring to a savings account make sure it is an INSTANT ACCESS account. You don’t want to get caught out!

You could put some in savings already instead of waiting until the end of the month, especially if it's instant access anyway.

[Deleted User]

I love weekly pay and it's paid on a Thursday every week too!

Sanctioned_Parts_List

enthusiasticsaver said:

Cutting back on reciprocal gifts has changed Christmas for me for the better.  

↑↑↑↑
This!

Everyone's family is different, but for the adults in our family, a phone call meant more than stressing over what to feed each other's bin. The younger children that still believe in Santa are a little different - their parents are just starting out, so a few stocking fillers are always welcome. That said, they're young enough you could gift wrap a rock and they'd be happy 

EssexHebridean said:

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 (or whatever your usual pay date would be), when you can transfer it back to your current account to meet your commitments for the month. 

I have an automatic sweep set up to move anything left over after my last dd goes out on the 17th into an instant access savings account, which works brilliantly every month except December. 

Every January, I forget to move my money back. Every. Single. Year.

This is why SMS alerts are a good idea - the bank warns me I'm about to go overdrawn on the 1st, and I can restore order before damage is done. 

Moral: move your money for December, but don't forget to put it back before the mortgage is due! 

EssexHebridean

Absolutely to remembering to move it back!  A lot of banks will let you set a transfer from one of your accounts to another for a future date - both nationwide and Santander do, I know, and from what others have said a lot of others too.  If you think there is ANY risk you could forget - or in fact, even if you don't think there is, but jut in case circumstances get in the way - then when you move it safely OUT of your current account, set up a transfer to move it BACK on your usual payday at the same time! 

The present thing - we are just seeing it more and more now, aren't we, people confirming what a relief it is to get out of the "loop" of buying for folks purely because they buy for you. In our close family we've tackled it slightly differently - we all now write a list of stuff we either want or even need - it can be as basic as toiletries (I have shower gel on mine this time because there's a decent chance that other people will buy me MUCH nicer ones than I'd buy myself!), Mum and I both routinely have iTunes credit on our lists too - or something a little more extravagant that you could never justify purchasing for yourself (Mum had a cushion she's seen and loves, but doesn't technically need, on hers this Christmas) but the idea is that anything you buy for someone will genuinely be desired and used - so cutting down on the stuff going straight to the charity shop bag as soon as you get it home - but also that the more routine stuff being bought means it frees up your own precious spending budget for other, more interesting stuff through the year. 

enthusiasticsaver

No early pension payments for me yet so not moved anything.  10 more days until end of year, all presents bought and most food/drink ordered and due to less socialising my food bill is only slightly higher than usual and that is mainly because DD1 is now home with us until the New Year.  I have to say Christmas is much less stressful than usual.  

I like your idea of a list with stuff you normally buy for yourself EH.  I am using the philosophy of something to do (lego/puzzle/painting by numbers/craft set) , something to read, something to wear and something they need/want for my DDs, DH and SIL.  Toys for DGDs ordered off an amazon wish list and flowers for my mum.  All sorted and DH helped me write out cards this year too so bonus. 

EssexHebridean

I love the "Something x 4" approach to presents ES - that's a really good focus! 

I'll need (ironically) to remind my boss to pay me this week - otherwise we'll both get caught up with Christmas stuff and he'll forget! 

EssexHebridean

Both MrEH and I have now been paid. We’re both fully aware of the fact, so for us the money will be left sitting in the accounts it gets paid into but untouched, and ai will do the money shuffle to the right place for January DD’s some time between now and the 31st. For us this month pay was just about a week earlier than usual.