For many people, payday is a day that is highly anticipated. It’s an anxiety-inducing few days leading up to the day you check your bank account. If you feel this way, I have some advice for what you should do on payday to manage your money and avoid all the stress.
But imagine not having to feel all the anxiety or the worry of waiting for the exact moment your check deposits into your bank account? Imagine not having to worry about depending on every single paycheck.
For some this idea may seem strained and far-fetched. However, it should be more of an attainable goal to set for yourself. Payday is definitely a good day, however it shouldn’t always be a day you drastically depend on.
Knowing how to manage your money properly can make for a smoother transition into not always feeling anxious about payday. Here at GenTwenty we strive to give our readers the best advice on finances and how to handle them.
What You Should Do On Payday To Manage Your Money
Adjust Your Perspective
Managing your money properly will lead to seeing payday in a different and more positive perspective. For instance, instead of anxiously awaiting the deposit, you could change the way you react to that and maybe have more of an excited or relaxed outlook about it. Changing your perspective will lead you to feeling more gratitude instead of feeling so anxious on payday.
Get a Pay Stub
Once you receive your monthly paycheck, be sure to ask your HR Department for a pay stub. This document is important when you apply for loans or have to show proof of income. If they don’t provide a pay stub for some reason, you can utilize this awesome check stub maker. They are easy to use and have great templates to choose from.
Create a Budget
It’s important to remember to create a budget so you know where all of your money is going on payday. You already know most of your money will go to bills first, then savings and then whatever you have left over you can have for personal use.
When I say personal use, I refer to having the choice to be self-disciplined and put that extra money in savings or choosing to have it as extra spending money to splurge on something. It is entirely up to you. Whichever route you decide on, make it a good one!
Create your budget using a free app of any kind or use our free budget download! So many free options out there to simply help with managing your money, bills, and any expenses.
Here are some greats apps and websites to help you with sorting out your finances:
Utilize Your Savings Account
If you follow the articles I have written here at GenTwenty, then you know I recently wrote about finances and why it’s so important to create a savings account. Do it.
Once you have created one, each payday commit to putting away a certain amount into your savings. No amount is too small and you will find this will be useful for any emergencies, unexpected expenses, or even to save up for a trip in the future.
Sort Out Your Money Properly
A good rule of thumb is to sort out your money BEFORE you decide to spend. This means holding off on spending until the end of the month. Because, again, you never know if something unexpected will arise.
The last thing you want is to return those cute shoes you just bought after you just got some sudden car issues. Make sure you pay your bills first, hold off on spending any extra money until you have put some aside in your savings and then at that point, you can decide if you want to splurge a little.
Best types of Savings accounts:
- A high yield saving account — a must-have
- Certificates of Deposit: Top rates, but limited access to funds (best type of savings)
- Cash management accounts: High interest rates but not a bank account and transfer’s are easy
- Money Market accounts: Better rates, but high balance requirements
- Specialty accounts/Retirement: Roth IRA’s, 529 plans, or health savings account
The goal here is to make payday like any other day. Although it should be a day to look forward to, it should not be a day to be anxious about. You want to reach a level with your finances that you are not so dependent on this day coming each and every time.
Financial responsibility means you need to be self-disciplined and well-educated on finances. It’s no easy road. But like all things, when you make things a daily habit, it becomes part of your daily life; like an every day routine.
Knowing where you stand with your finances and being honest with yourself will always be the best route to take to make you financially successful. I once dreaded payday in a love/hate kind of way. I was anxious and dreaded it, but ultimately when payday arrived, I was relieved and happy to have money in my account.
Overtime I have put myself in a good place financially that I can now help others and give back. You can be in that place too, with hard work, and self-determination!
What do you do on payday to manage your money?