Beware the December pay trap!

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  • EssexHebridean
    EssexHebridean Posts: 21,360 Forumite
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    I notice that this has been "tipped" in the email this week, so although slightly earlier than usual, I'll bump it back into life as an early reminder for people. (And yes - I'll be making sure it appears again next month, too!)
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  • burnleylad1882
    burnleylad1882 Posts: 31 Forumite
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    I’ve done alright this year. Bagged enough overtime in October to boost November’s wage right up and cover Xmas. And doing enough overtime in November so my pre Xmas pay will be large enough so I don’t have to touch my pay until January. I may finally be maturing :beer:
  • EssexHebridean
    EssexHebridean Posts: 21,360 Forumite
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    Brilliant - well done! Now - for next year, how about building in monthly savings through the year that mean that Christmas will be covered cost-wise anyway? Then any overtime you get in these couple of months (and you won;t have to kill yourself to do it if you don't wish to, either) will go to debt-payments, savings, towards the cost of something like a holiday or similar depending on your current circumstances?

    For those in jobs where overtime is fortunate enough to be paid then using it to pay for one off expenses can be a good - if sometimes a little risky - plan - but for the majority who aren't in that position budgeting thoughout the year to cover things like that is definitely the way forwards I reckon.
    🎉 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
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  • chelseablue
    chelseablue Posts: 3,302 Forumite
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    I get paid on the last working day of the month, except for December and January when they do it earlier (December obviously because of the Christmas holiday, January I think so there's not too long a wait for people)

    This year its 23rd December, not heard about January yet
  • EssexHebridean
    EssexHebridean Posts: 21,360 Forumite
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    chelseablue wrote: »
    I get paid on the last working day of the month, except for December and January when they do it earlier (December obviously because of the Christmas holiday, January I think so there's not too long a wait for people)

    This year its 23rd December, not heard about January yet

    But if people then use January's pay earlier the same thing applies only a month later - it's not actually helping people at all!

    If you do as suggested in the opening post and set aside your "early" pay until your usual payday then there isn't "too long" a wait for anyone anyway - it them becomes just another regular pay month.
    🎉 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
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  • chelseablue
    chelseablue Posts: 3,302 Forumite
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    EssexHebridean wrote: »
    But if people then use January's pay earlier the same thing applies only a month later - it's not actually helping people at all!

    If you do as suggested in the opening post and set aside your "early" pay until your usual payday then there isn't "too long" a wait for anyone anyway - it them becomes just another regular pay month.

    Good idea, I can move it to a different account and move back at the end of the month
  • clairebeth
    clairebeth Posts: 299 Forumite
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    I work for the NHS and agree that this is not a helpful way to pay people. It's a 24/7 service, and I'm fairly sure the payroll people are in the office on the 27th of Dec, so why can't they pay people nearer the end of the month. Or just set up the electric payment to do it for them as they always do? We are not in the dark ages.

    Their thinking behind making January an earlier pay date is that February is a short month, so this year it will be:
    Dec 19th (the day before our Christmas party...)
    Jan 23rd
    Feb 27th
    (pay day always the last Thursday of the month, except in Dec and Jan when it's the second last Thursday).

    It doesn't affect me because I've always done as you suggested and don't look at the December pay until the end of Dec. But there are a lot of people I work with who can't wait to be paid for Christmas and then make posts on Facebook about how they are skint on the 12th of January.

    This paying early in January only encourages that, I think, like that's what they expect to happen because people can't manage their money.

    Payroll needs to get their priorities sorted!
  • B3C
    B3C Posts: 5 Forumite
    Our company has always paid early in December to "allow people to do Christmas shopping"!! We are paid on 25th of each month, but in December have been known to get paid as early as 12th December. This year, they are paying late (21st), and people are complaining already! :undecided
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,585 Ambassador
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    We spend within our monthly budgets and spending envelopes not the balance in our account so when we receive our pension income does not matter in the least. The budget resets on 31st monthly or 30th if only 30 days in the month. We do keep a buffer in the account though.

    Good tip for those who budget from payday to payday.
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  • Mrs_Ryan
    Mrs_Ryan Posts: 11,832 Forumite
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    We’re not getting paid until the 31st- thankfully I get two lots of PIP in December due to the way the dates fall so I’ll be okay (and I’ve done all my Xmas shopping) My student loan, January PIP and wages will all land together in January though so I’ll feel rich but won’t be :D
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