Budgeting was easier when we were paid weekly
Weekly pay is not that common any more, but budgeting seemed to be easier when it was the norm.
I can remember a time when nearly everyone was paid weekly. Sure, this was probably before the time of internet banking and payday loans, but was it easier to budget this way? After all, there can’t have been much need for a seven-day, high-interest loan if your next wage was only a few days away.
Budgeting weekly
Around 15 years ago I remember working in a job in which I got paid weekly by banking transfer into my account every Friday. Looking back now I think it was great.
I had direct debits to pay, which I carefully worked out each month. I knew almost to the penny how much of my weekly pay packet was mine to keep, save and spend and how much I had to leave in the account each week to cover my essential direct debit costs.
To be fair I was a lot younger in those days and my commitments weren’t as high as they are now, but I look back fondly on the period as budgeting on a weekly wage seemed very simple. Maybe I’m looking back with rose tinted financial glasses.
I worked with people who were older and had higher commitments, but they too seemed to manage well. I also remember that making small regular savings didn’t seem too much of a sacrifice at this time.
The best advice I had about being paid every Friday came from one colleague who always told me "as long as you’ve got a fiver in your bank on a Thursday night you’ve got no worries".
Budgeting weakly
Around the time that I was leaving this job to move onto pastures new, the staff were told that the wages department were making the transition from weekly to monthly pay.
There was outcry, as the transition itself would be difficult for those without savings to cope with - essentially the staff would go instantly from a weekly wage to four to five weeks without pay.
Once that tough transition was made, many expected they would be okay.
Monthly moans
I kept in touch with friends from my old workplace and over the coming years they began to look back on the weekly pay packet fondly. They too found it harder to budget on a monthly wage.
As a debt counsellor we come across people who have difficulty budgeting for all kinds of reasons. A big gripe we hear is that the client is paid four weekly. They don’t seem to grasp the concept that they actually receive 13 payments a year. Four weekly pay can really throw some people out of whack.
Budgeting tools
lovemoney.com has some great tools to help you budget but what do you do if you find that your budget doesn’t add up?
If debt is a problem we’ve got an online tool that can help with debt management and advice. Our Debt Remedy tool didn’t exist back when being paid weekly was the norm, but it’s designed to help people in all kinds of tough situations regards their finances and it doesn’t matter if you’re paid weekly, fortnightly, four weekly or monthly, it can help in all circumstances.
Did you ever get paid weekly? Did you find it easier to budget? We’d love to hear your thoughts.
More on debt:
Debt management companies still breaking the rules
Huge rise in number of women going bankrupt
Why a 0% credit card could mean 100% trouble
Bankruptcy: handing back the keys to your home
Scammers turn to 'mis-sold IVA' letters
Most Recent
Comments
-
Of course good budgeting is important and our [I]wonderful[/I] politicians should take note. I can see that weekly payments would be better for those who do not or cannot effectively budget but with proper budgeting, weekly or monthly payments should make no difference at all. The biggest problem is that for many, often through no fault oftheir own, there is too much week/month left at the end of the payment. While there will always be the profligate among us it is unfortunate that too many of them are in Government and they are in control of their income which is from us. So they spend their time, as is evidenced by the LD conference, dreaming up more and more ways of separating us from our hard-earned cash and their success at that, in many cases, causes the budgeting problem we are discussing. Of course the financial paracites in the banks and loan companies don't help. It's not that we are weekly paid but that, [B]after TAX[/B], we are weakly paid. It has been said that TAXation provides only 38% of GDP to HMG no matter what taxes they apply. I cannot confirm this number but if taxes are raised and raised they will reach, at some point, the point of diminishing returns. That might well be 38% of GDP. When the said HMG spends more than that they are obliged to get the money elswhere or, as they are doing now, scratch around for other ways to fleece us ignoring the point above.
REPORT This comment has been reported. -
What twaddle, if direct debits are monthly, in what way is it easier to be paid weekly and have to remember to keep some back? The basic problem is that it is absolutely fine to say 'I don't understand mathematics' (for which actually people mean basic arithmetic) The problem with being paid monthly is that when you get stupidly carried away and can't be bothered to rein your spending in to match your income there is longer to wait until your next payday. Simple adding and subtracting ability combined with a little self control is all that is needed to 'budget'.
REPORT This comment has been reported. -
@electricblue. I agree we do need basic financial education in schools. The Victorians did teach basic finance and they even taught 10 year olds how to calculate yields on Government bonds. I know some university students who don't even know what a government bond is. I paid someone to do a job for me this week, it wasn't much money, but I thought it would help. Some of the money was spent on sandwiches at £2.00 a time from Tesco. I think schools should bring back cookery and home economics too! If someone does have intrinsic learning difficulties, we have to teach them what we can and how we can. Not everyone can be rocket scientists, but we can try to make everyone independent of the likes of Wonga.
REPORT This comment has been reported.
Do you want to comment on this article? You need to be signed in for this feature
28 September 2012