Beware the December pay trap!

foxgloves

Good reminder for new people, @MovingForwards. Just found out December pay-day will be the 19th, which is 8 days earlier than usual. I will budget through to 27th as usual, as January will be a very long month if I don't.
F

TheAble

"It's the most wonderful time of the year..."

EssexHebridean

Thanks @MovingForwards - and good timing too as it seems people are now beginning to be told when their December wages will be paid. 

MrFrugalFever

My company has just made a change to our pay date from the 29th of each month to the last (working/business) day of the month, historically they've always paid on the week before Christmas but it will be interesting to see what they do this year. The cynical side of me thinks they've only changed it to hold the money in their account earning interest for a bit longer.

Either way, I will plan December out as if I was being paid on the last day to ensure I don't fall short for January!

MFWannabe

I hate being paid early at Christmas, would rather it was left as it is. 

If I do get paid early I transfer it to savings account within my bank and then move it back to current account on payday

cuddlymarm

Our firm tends to pay a week earlier in December and January so February can be a lean month, but the credit cards are both at zero and only for emergencies. Also January tends to be weird concoction month food wise with leftovers being used up and sweets as pudding, with beans on toast and egg and chips are always welcomed after all the rich food.

kimwp

I'm curious - why is it an issue to get paid early? As in what are the practical steps that mean people then have a lean January?

EssexHebridean

kimwp said:

I'm curious - why is it an issue to get paid early? As in what are the practical steps that mean people then have a lean January?

Because in some cases the money comes in anything up to two weeks early - and at a time when often financially things are a stretch of a good solid budget isn't in place. So the food shopping for Christmas and New year for example - gets done using the next month's pay, and some extras make their way into the trolley because "we can afford it!". Extra presents get bought because the bank account looks healthy for the time of the month - there is a perception that you have more money than in fact you do. With all the excitement of the festive season, it's very easy for people to forget that there are still the usual bills to pay in January.

Then the 2nd of January comes around and all the DDs flow out, and suddenly there is a negative figure, and still a month's food to buy, and the rest of the bills...

The thread was started some years ago after many years of seeing folk arrive here in January in a panic because they cannot make ends meet. To those of us who've been here for a while and "done the thing" - it's a very obvious message, but it comes down to being one of those things that if you don't budget, it can be an easy trap to fall in to.

EssexHebridean

MFWannabe said:

I hate being paid early at Christmas, would rather it was left as it is. 

If I do get paid early I transfer it to savings account within my bank and then move it back to current account on payday

yes, I often don't bother with the physical moving of the money these days, but I have got very good indeed at ignoring the extra funds until the 1st of January as usual! 

Sidney_31

Thank you so much for this reminder! I will be moving my salary on 22 December into my savings and have made a note to move it back on 30 December. Why has this never occufred to me before? I've always really struggled in January.