April 30, 2019 Managing Finances on Payday

Ways to manage your finances on paydays from your budget and savings to entertainment and recreation.

April 29, 2019

Payday is probably one of the best days at work. After days or weeks of hard work, you finally get rewarded for your efforts. Most people get carried away on such days and end up spending all their hard earned cash on meaningless activities. Treating yourself with some good food or going for a day out during the weekends is not a bad idea, but you need to consider the cost you will incur. One vital rule of personal finance is that you do not spend more than you earn. That being said, we are going to look at ways in which you can manage your finance during paydays:

1. Relax

This might sound like a very simple thing to do, but many people can’t. There is usually a lot of adrenaline and drive to spend immediately when you get paid and that is why relaxing is very important. It will help you avoid some unnecessary spending like extravagant shopping. You need to compose yourself and avoid the influence of your friends at work to spend. Once you are composed and relaxed, then you can follow our next point which is to budget your money.

2. Budget

Once you get paid, you need to create a budget for how you are going to spend your money. Making the budget beforehand can be a great idea as well. Having a budget shows that you have a plan. While making a budget you first need to consider your expenses and basic needs before anything recreational. You need to arrange the expenses based on importance then add them up. Get a budgeted total of how much you will be required to pay and then pay them one by one in order of urgency and importance. Avoid including expenses that you can easily avoid or those that are unnecessary. In case you realize that you will have absolutely no money left after paying off all your expenses, then you can consider getting a loan. Bonsai Finance offers a variety of loans to choose from, including bad credit payday loans and same day loans. This can help push you through the month as you come up with ways of limiting the expenses.

3. Save

Saving is never an easy task for most people. We usually feel that if we cut a certain amount from our salary, then we won’t be left with enough to spend and pay our expenses. Although this may be true, it is not always the case. There are a lot of compulsory deductions that go through your salary such as taxes. If you were to supposedly remove these deductions, then your salary would amount to way more than you get. But still, you always manage to find a way to use what you have to pay your bills because the deductions are compulsory. You can treat savings as part of these deductions. Open a savings account and allow for about 10% to be cut from your salary as part of your savings. With time the amount will grow and gain interest over the years. Furthermore, this can be very helpful in case you lose your job or get a huge unexpected medical bill.

4. Limit your spending on entertainment and recreation

We know that you have worked hard to earn your money and doing some fun and entertaining activities is something you deserve. However, you need to limit your spending on such activities, especially during payday. Even when you have a lot of extra cash left after paying off your bills, think big. Think long-term. The less you spend, the more you’re left with. If you do expensive recreational activities 4 to 5 times a month, consider limiting it to twice or thrice a month. That way, you are able to carry some money forward to the next one or even two paydays.

The following are some few points you can use to manage your finances on payday. Your ability to manage your finances will separate you from the other workers and make you wiser and more independent.

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