I hated having a job, but I sure miss paydays. The average American salary is about $52,000. I sure didn’t make that much money the last time I earned a salary, which was about 2009. I much prefer being a freelance writer now. But having regular intervals of pay, no matter how well or bad I did my job, is something one can’t help but take for granted. What I do regret is not saving enough money or spending it wisely. I needed a payday routine. So, here is a payday routine everyone should follow.
And why should there be a payday routine for everyone to follow?
When you take something like a salary for granted, it’s easy to think you will always have it instead of planning for a better financial future. I am not saying that there all people with a salary are not financially responsible – just that not enough are.
The typical American owes over $90,500 in personal debts. So, it is obvious that too many of us do not make the most of the salaries that we make.
What do you do when payday comes around? What is your financial mentality when you get your salary?
Do you go to a fancy restaurant for dinner? Or do you go shopping and buy a bunch of things you don’t need or want? Are you used to a payday coming around and adding to your existing debt instead of your future financial outlook?
Maybe you need a payday routine.
Payday Routine 101
A payday routine is a basic set of financial actions that you take each time you receive your salary. Having a payday routine means dispassionately reviewing the state of your finances regularly, and especially when payday comes.
A good way to regain control over your financial destiny, and plan better for the future, is to have a payday routine. And having a payday routine can result in more responsible and productive actions than just spending every penny as soon as payday arrives.
There is no generalized approach to assessing your finances when payday arrives. When I say there is a payday routine that everyone should follow, it is a generalized term that should have a customizable approach.
You should assess your finances, hopefully with the help of a financial advisor, in a manner that fits your own situation.
Payday Routine Everyone Should Follow
Here are several payday routines that everyone should follow. You can follow them all or just the ones that can work for you.
Make Sure That Your Salary is Correct
Make sure that you have been the correct salary every payday. That is a payday routine everyone should follow.
It is not out of the ordinary for a payroll office to make a mathematical mistake. And you want to catch it sooner than later.
If you are overpaid, let them know as soon as possible. If you spend such funds, then the amount will be automatically garnished from future payments, if you are lucky.
Look over your tax and various salary deductions. Are you working overtime? Make sure that you have been paid properly.
As previously mentioned, it is always easy to take a salary for granted. And when we take a salary for granted, we are so grateful for it that we don’t even check the pay stub to make sure it is correct.
Save Money
OK, so you are certain that you got paid the right amount. Good.
Now save some money. How much money you save is not as important as getting in the mindset.
You can use automated settings in an online bank account to automatically allot and transfer predetermined amounts of money into a savings account after a salary is deposited. This is a great payday routine everyone should follow – you can automatically get into the habit of saving money.
And saving money as an automated routine is easier to do than overcoming the temptation to spend it all as you get it.
Start Automating Bill Payments
One payday routine everyone should follow is to start automating bill payments. And if you have begun automating deposits into a savings account, then you have no reason not to do so.
Keep regular records of your expenses every time you are paid. And then review your online bank account to learn how to automate the payment of bills, expenses, and utilities.
Your online bank account can be set to automatically pay rent, utilities, bills, streaming TV subscriptions, and more.
Make sure that you always have enough money in your bank accounts to cover your automated payments so that you don’t encounter overdraft fees.
Alternately, you could create another bank account that exists just to automatically pay bills and expenses as well.
Check Your Automated Bank Account for Mistakes
In the same manner that you check your salary to make sure it is correct you should check your online bank’s automated settings on a monthly or bimonthly basis.
That is a great payday routine everyone should follow because you should never take it for granted that an online mistake can’t happen.
Additionally, the services billing you may make mistakes when they automatically withdraw funds as well.
And it is a lot easier to correct any potential mistake you find the sooner that you find them than later.
Keep a Monthly Budget
Make sure that you keep a monthly budget of your finances. (And it may be a good idea to keep a weekly budget of your finances as well.)
Keeping a monthly budget just helps you to understand the extent of your expenses and bills. Having a good budget will also help you to differentiate between need and want relative to your expenses as well.
Don’t take having a payday for granted in a way that you just appreciate the salary without assessing your total financial picture.
Having a payday routine everyone should follow could help you to plan for a better future instead of just anticipating payday.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.