Panic over paychecks

P started his new job this week.  With the job change, he now only gets paid once (vs. every two weeks at his old job) at the end of each month.  I also have a job where I get paid at the end of each month.  Even though our monthly income remains the same, we now have to really budget our money since it is all coming in at one time.

Panic sets in.

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Ang

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4 thoughts on “Panic over paychecks

  1. I used to get paid monthly in the uk and then in Australia, its been either weekly or every 2 weeks. You just get used to it, but I recommend setting up some ‘funnel’ bank accounts to help you manage – i.e. one account for all your regular commitments, one for savings etc Divide your yearly regular bills (not food) by 9 or 10 – and put that to the bills account when you get paid. Then when the gas bill or car insurance comes – you’ve got it covered completely separately from your day to day needs. Its takes a little while to get the account established with enough money to cover bills you haven’t ‘saved’ for yet – hence the divide by 9 not 12 – it adds padding into the account quickly. After a year, you should be able to adjust the regular funnel payment to be more accurate, or just use the excess as savings. It’s worked for me for 25 years..

  2. I imagine that to be quite a challenge. You would have to anticipate total amount coming in.

    b) account for possible miscalculations in the total (should you assume a certain amount is coming, only to realize more or less than that actually came), and plan for that.

    It is going to be very, very interesting. Don’t you think, Angela?

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