Beware the December pay trap!

enthusiasticsaver

Re opened on request by @EssexHebridean

EssexHebridean

Thanks ES! Yes, ‘Tis the season… 🎄 🎅 

Naomim

This worked really well for me last year so thanks for the reminder @EssexHebridean 👍

BeerSavesMoney

I’ve recently changed jobs and my pay day has changed from the 15th of each month to the last working day of each month. 

Thankfully all my direct debits had been setup for the 1st anyway but good advice here for keeping the money separate if I happen to be paid early. 

Spendless

We don't have this as DH payday remains the same, the last working day of the month, so frequently only paid on NYE. It makes January a whole lot easier but the back end of December can be a struggle. Last minute presents for someone you've forgotten, a larger than usual grocery shop to incorporate Christmas day dinner or any entertaining, Additional socialising.  In Jan no one is out anyway and the shops are full of reductions. Would much prefer a slightly earlier December pay packet.  

EssexHebridean

@Spendless so now you have identified this from the start of 2022 will you be budgeting a little more into your christmas savings budget to cover those things ready to ensure that Christmas and the end of December next year is covered? Then anything extra you set aside from not going out etc in January can be paid against debt, or into savings, depending on your individual situation. (January is often quite an expensive month on socialising for us, so "no one is out" is a bit of a sweeping generalisation to be fair - I appreciate it may be true for you though!)

MrsPorridge

We are now on private pensions, first Christmas was last year and I was very pleased to find that the pensions are paid at the end of the month and not just before Christmas day.  For the first time in over 40 years, I didn't have that awful long wait in January

Spendless

EssexHebridean said:

@Spendless so now you have identified this from the start of 2022 will you be budgeting a little more into your christmas savings budget to cover those things ready to ensure that Christmas and the end of December next year is covered? Then anything extra you set aside from not going out etc in January can be paid against debt, or into savings, depending on your individual situation. (January is often quite an expensive month on socialising for us, so "no one is out" is a bit of a sweeping generalisation to be fair - I appreciate it may be true for you though!)

Currently we have a situation that couldn't have been anticipated at the beginning of the year, regarding financial support for our 2 kids in education (change in personal circs for eldest, and a last minute educational change for youngest), This will only end mid summer next year, so planning may be possible from that point on but a struggle till then. Our friends don't tend to be out in Jan due to their own earlier in December pay, but we do have 2 close relatives Jan birthdays so have to take them into account too. I'm pretty sure socialising in pubs/restaurants in  Jan tends to be quiet because as well as many with the early Dec payday  and indulgence over the festive period, I believe there's also a 'sober January' movement. I'm aware from someone in hospitality that they find it hits their trade a lot .

EssexHebridean

it does indeed - and sadly although December in pubs tends to theoretically be busy, in fact a lot of the time those "once a year drinkers" don't drink THAT much quantity, and make the environment less welcoming for those who are in there the rest of the time, so actually the income from the festive season doesn't always balance out that increasingly quiet January as much as it might appear to. There is an increasing attempt to remind folk that just because you're not drinking alcohol - if that is what you choose to do - you can still go to the pub and drink soft drinks, many even serve coffee these days.  

Hopefully your situation will sort itself out on your expected timeline and you'll be able to set aside money from that stage to mean that December can be more festive and less financially stressful. 

peb

Thanks EH for highlighting this again.  Not working this year but I got so demoralised in other years trying to explain why being paid so early was a bad thing.  Especially when folk were so desperate for pay day normally and I've worked in places where it's common to be paid two weeks in arrears and two weeks in advance or three weeks in arrears and one in advance - so even on a normal pay month money was spent that hadn't been earned.