Going from monthly to weekly pay

PipneyJane

https://forums.moneysavingexpert.com/discussion/comment/81975208#Comment_81975208

May I second this? It will make your life so much simpler. Once you’ve worked out what your weekly take-home pay will be, base your monthly budget on a 4-week work month and set that as your standing order amount. You’ll build up a cushion and not suffer the more unpleasant side effects of working in a monthly budgeted world while being paid weekly, such as not having enough cash to buy your monthly train ticket because the mortgage was deducted this morning. (BTDT a very long time ago.)

More recently, when I changed jobs in 2018, my new job’s payday was mid-month, while my husband and I had always budgeted on calendar months. It was much simpler to quarantine my salary away from my “money to live off” account by parking it in a separate account and then transferring it to my main account on the last day of the month.

HTH

• Pip

mlz1413

In a previous job I went from monthly paid to 4 weekly. So instead of 12 pay days a year there are 13.

It was hard because I took home less pay per payday, but had the same bills. But because payday moves the benefit was that in December you got paid on 1st and 29th of the month.

In your current situation you will receive £2028 every 4 weeks, but you are used to getting £2150 every 4.33 weeks (monthly), £122 'short' when DDs are due.

Hopefully your bills are less than your full wage so all the DDs will be paid from the £2028

The next pay you get you need to be very organised with. Keep £122 on your current account, this is the value you are used to getting (the value you have been living on).

Then put the rest of that money in a savings account until thev1st day of following month.

Week 5 -8, you have been paid another £2028 again it should cover your bills. Week 9 keep £122 and save the rest until 1st of next month.

You need to be religious about splitting the extra every 5th week so make your bills work, but as you go through the year the savings will build up and it should take the budgeting stress away.

penners324

You'll take home more, so go for it.

There are banks that let you move money into pots, then have bill direct debits come from the pot. So weekly contributions into those pots.

Budgeting sorted.

Starling & Monzo offer this