Changing from monthly to weekly - what this means for you.
You’ll receive confirmation on when this will take effect. Below we’ve outlined some tips and advice on how to best manage this change and make the most of your payment schedule.
Advantages of being paid weekly
Being paid weekly allows you to budget without having to wait for your pay at the end of the month. We understand that schedules change on a week-by-week basis, so it can be better for you to know what to expect at the end of each week, rather than each month, allowing you to adjust your personal commitments accordingly.
1. Frequent and reliable cash flow
Getting weekly pay carries the advantage of a consistent amount being paid to you each week. Knowing exactly what you are going to earn each week helps you with budgeting, tax planning, mortgages and credit/bank account applications.
2. Efficient money management
It's helpful to space direct debits out across the month, rather than having one day where every payment is made.
Spacing out direct debits allows you to see exactly what you have left to spend on hobbies and leisure.
3. Better banking perks.
With an eye on better managing finances and listening to the advice of money experts more than ever, you may well have heard about the benefits of switching bank accounts to obtain a better deal. In some cases, the accounts with the best perks require a minimum employer payment of a certain amount of debit payments. Being paid weekly allows you to meet the criteria instantly, without the worry of having to move money around at either the start or the end of each month. For more tips on the best bank accounts, access these helpful tips.
Tips on how to better manage your money.
In our article ‘how to save money from your salary’, we covered some important tips and advice to make the most of your pay, especially during trying times. One of the key pieces of advice on managing your money is to budget effectively:
budget money before you get paid
There are many different ways to budget money. Some people prefer to keep track of their budget by writing down in a notebook how much money they're making and how much they want to save. Others prefer to use popular budgeting apps to keep track of their finances. You also might be interested in a budget template that we've created to support you with that. You can find a template here.
Regardless of whichever method you choose, keep track of payments that you make to yourself, such as deposits into your savings account.
You should also keep track of your basic needs, such as paying for food, transportation, and home utility costs. Try to then make a plan to save money from your salary by writing down a monthly saving goal.
Once you've done this, create a budget for things that are important to have but which are not essential. Try not to spend money on these things unless you still have enough left over from your monthly pay after putting money into savings.
A good way to work out how much to allocate to needs, wants and savings is by following the ‘50/30/20 rule’.
- The rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must-have or must-do.
- The remaining half should be split up between 20% savings and debt repayment and 30% to everything else that you might want.
To access more tips and advice on how to manage your pay, click below:
Make sure you have money left for yourself
Although making sure you have some money saved for a rainy day and enough money for bills is really crucial, it’s also important to not leave yourself short.
Budgeting isn’t all about paying bills and saving money, it’s also about making sure you have enough money to do the things you enjoy.
Whether that’s going out for drinks with friends, shopping or eating out, it’s important to look after your happiness and well-being.
More helpful advice on money management:
Our latest blogs and insight articles are available to access now, to help provide you with more expert guidance on how to make your money go further, both at home and in the workplace: