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Payday May Be A Ka-Ching Moment – But Here’s How To Turn It Into A Savings One Instead

Payday doesn’t always have to mean a treat. While it can be tempting to temporarily boost your dopamine levels with a quick fix, planning for the long run when it comes to spending is sure to be far more rewarding. Creating a routine for your payday will not only help to get the bills paid on time but also save even more money in your pocket.

What You Need To Do To Establish A Payday Routine

First of all, transfer any funds that you have leftover from the previous payday to your savings account. This will allow you to spend less money that might be considered as ‘extra’, and save for a long-term goal. For best results, complete this step the night before payday. This will also reduce your ability to ‘splurge’ the leftover money before your next salary.

Secondly, pay as many of your bills as you are financially able to do, rather than wait till the ‘due date’. Once money comes into your account, a lot of it you may have already marked for bills and payments that need to be made. Instead of holding off on those due payments, you should pay them off immediately as this will give you a clearer indication of how much money you actually have to spend until next payday.

Finally, creating a to-do list for the day of your pay is an effective method to visualise and plan out your expenses. By outlining your small and large expenses that need to be paid before your next day, you will have a much clearer idea of what is coming up. They will also help identify unnecessary expenses or when extra money is being spent where it should be.

By following these simple steps, you should be able to put into practice a payday routine that suits your needs and assist your saving goals.

If you’re someone who often finds it difficult to make large lump sum payments for goods or services, you may want to consider looking into “Buy Now Pay Later” services.

Buy now pay later essentially means that, rather than paying in a full lump sum payment for a product or services rendered, there may be an option to pay through instalments of a certain amount over a set period to make the sum of the full amount in total. This method should allow you to pay in full for the product or service without overly straining your finances – you pay back what you can, as agreed upon when you begin the buy now pay later service.

Some popular buy now pay later services include Afterpay, Zip Pay, Brightepay, and some credit card networks such as  Mastercard and Visa, can offer buy now pay later arrangements.

Though it can be a convenient, immediate solution, it may be challenging to juggle the necessary repayments with other financial commitments. It’s not always the most appropriate method for people, and you should bear in mind your situation and ability in paying back the amounts. 

Before you sign up, keep in mind: 

  • It becomes easier to overspend with buy now pay later services, so know your limits on what you can and can’t afford.
  • You will be charged fees and costs to use the service, which can add up to a princely sum in and of itself.
  • Keeping track of your payments can be tricky if you’ve signed up for multiple services.
  • It could affect your loan applications for a car or mortgage as lenders consider buy now pay later spending just as much as your credit score.
  • Late repayments can appear on your credit report, which affects your ability to borrow money in the future.
  • Layby can be a cheaper alternative to buy now pay later, with no account-keeping or late fees to consider

If you are someone who could make use of BNPL services, you may wish to:

  • Ensure that when using the BNPL service, you stick to a set limit on what you spend so that you can comfortably pay it back later. 
  • Aim only to have one BNPL account at a time to manage payments through, rather than confuse yourself with multiple payments across different providers.
  • Always budget for bills, loan payments and BNPL payments, and 
  • Rather than use your credit card for payments to your BNPL account, consider linking to your debit account instead.

If you would like assistance in planning your financial future, help in managing your budget or some friendly advice, see us for a chat about what we can do for you.

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John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier