Finacial Advice

[Big Dan]

Hi All

I've been told by my employer about my wages being paid monthly in the new year rather than weekly as the current status. I'm after any advice you can give for when that transition happens and what i can do to minimize the effect of it on me

What do you think about changing all my bills to monthly or keep them weekly as you can tell this all new to me any advice would be welcomed

[IdunBrokdItAgin]

I used to get paid monthly in the UK (everyone gets paid monthly there apart from temps).

I can tell you it seriously sucks compared to getting paid fortnightly (or even weekly as in your case).

The transition will be nasty unless you take steps. What happens usually when getting paid monthly is that you are poor as a church mouse one week before pay day and then you go on a big spending blow out as soon as you get paid (and repeat it all over again next month).

The best suggestion I can give you is to have your wages paid into a savings account (where you can't get your hands on it easily) and put a weekly transfer from your savings account into your everyday account. It shouldn't cost you anything in bank fees (apart from possibly a set up fee). As long as you don't raid your savings account then you will be fine.

The first month of transition will still be hard - I would suggest that you start building up a reserve for that month.

Cheers

[slofox]

Hi All

I've been told by my employer about my wages being paid monthly in the new year rather than weekly as the current status. I'm after any advice you can give for when that transition happens and what i can do to minimize the effect of it on me

What do you think about changing all my bills to monthly or keep them weekly as you can tell this all new to me any advice would be welcomed

Open a special holding account and have the monthly wages paid into that. Then set up a weekly auto payment from that holding account into your day to day account. Have the regular weekly amount transferred. ONLY spend the money in the day to day account account. That way it's the same difference...



Edit: Errrrr I see Wild Weston has already said this...

[Scouse]

Hi All

I've been told by my employer about my wages being paid monthly in the new year rather than weekly as the current status. I'm after any advice you can give for when that transition happens and what i can do to minimize the effect of it on me

What do you think about changing all my bills to monthly or keep them weekly as you can tell this all new to me any advice would be welcomedYour employer can't force this change on you so you should try to negotiate somthing like you get payed a month in advance instead of having to wait a whole month to recive your first paycheck.

[AllanB]

Monthly sucks-arse. 12 pays a year. MrsB was on that years back. I'm happy with my weekly.

I'd arrange them to be paid monthly if it suits - preferably due say a week after your monthly pay arrives. That way you can clear them all that week while you are still flush.

Your mortgage (if you have one) may differ - fortnightly payments speed up the over all payment and are worth doing to save interest.

[Big Dan]

Your mortgage (if you have one) may differ - fortnightly payments speed up the over all payment and are worth doing to save interest.

In my case this isn't an issue

[Conquiztador]

It makes sense to pay forthnightly and even more so monthly. The time the payroll takes each week is costly. So to do it once a month is much cheaper. It then leaves money over to pay the staff higher hourly rate.
I am in charge of an organisation with 70 staff. We are considering moving from weekly to forthnightly and halve the cost.

As you will get exactley the same pay it will be up to you to manage it. If you currently spend $800 per week just keep on doing the same and you be sweet.

[doc]

Was there any discussion on the change. Or this is whats going to happen ?

[IdunBrokdItAgin]

It makes sense to pay forthnightly and even more so monthly. The time the payroll takes each week is costly. So to do it once a month is much cheaper. It then leaves money over to pay the staff higher hourly rate.
I am in charge of an organisation with 70 staff. We are considering moving from weekly to forthnightly and halve the cost.

As you will get exactley the same pay it will be up to you to manage it. If you currently spend $800 per week just keep on doing the same and you be sweet.

I agree that it (extending the payment repetition period) saves on company resource costs but there is a time value of money. If a company pays staff monthly for the work they have done that previous month then the company effectively delays paying its staff and the staff lose out.
If a company pays staff monthly, made up of the previous two weeks work and for the forthcoming two weeks work then the effect upon the staff is fairer and the company can still save on its costs.

Extending the payment repetition period itself only aids the company (in reducing cost). Thought needs to go into how it affects staff and how any negative effects can be mitigated, such as the above example.

Just a bit worried about the comment that staff effectively are paid the same, regardless of the payment repetition. In a literal sense yes but in a time factor sense then they are worse off (if paid retrospectively for the hours worked).

Also, on a general human basis - people are not good budgeters - it is a learnt skill. The further forward people have to budget for the less people who have the necessary skill/ control.

[Conquiztador]

I agree that it (extending the payment repetition period) saves on company resource costs but there is a time value of money. If a company pays staff monthly for the work they have done that previous month then the company effectively delays paying its staff and the staff lose out.
If a company pays staff monthly, made up of the previous two weeks work and for the forthcoming two weeks work then the effect upon the staff is fairer and the company can still save on its costs.

Extending the payment repetition period itself only aids the company (in reducing cost). Thought needs to go into how it affects staff and how any negative effects can be mitigated, such as the above example.

Just a bit worried about the comment that staff effectively are paid the same, regardless of the payment repetition. In a literal sense yes but in a time factor sense then they are worse off (if paid retrospectively for the hours worked).

Also, on a general human basis - people are not good budgeters - it is a learnt skill. The further forward people have to budget for the less people who have the necessary skill/ control.

Totally agree. And if we go ahead with it we will do something for our staff so they do not suffer from this.

[nothingflash]

I can tell you it seriously sucks compared to getting paid fortnightly (or even weekly as in your case).

It's fantastic on pay day and probably for the next couple of days but it's generally downhill from there until next pay when it is fantastic again. And so-on.

[Big Dan]

Was there any discussion on the change. Or this is whats going to happen ?

Well i heard it thru the work grapewine and not offically but i have had it confirmed via e-mail and have meeting this week

[kwaka_crasher]

What's the difference? You still get the same money monthly.

[Coldrider]

What's the difference? You still get the same money monthly.Try to arrange it so you are paid mid month, as in 2 weeks behind, 2 weeks in advance.

[yungatart]

Watch out for the five week month! A big trap for young players, particularly when you have weekly outgoings, like rent etc..

[Ronin]

Watch out for the five week month! A big trap for young players, particularly when you have weekly outgoings, like rent etc..

Yup was just going to say that. Most people who haven't been paid monthly have no idea 5 week months exist.

[Grumpy Gnomb]

so what did your contract say or is it up for review in January and has your employer has just decided to change his part with no agreement from you

[mynameis]

If you plan and budget well and have good control over your finances it should not make any difference at all, because the amount of money you receive is still the same but at a different frequency.

However your employer will save as payroll is costly. And yes they can switch to monthly if they decide to.

[davereid]

If you are poor at budgeting, it can really hurt, especially if you top up the lean weeks using a credit card.

Pay all your essential bills the day your pay arives, or at least transfer the money to a "bills" account which you cant get to from eftpos.

The big bills, rent, electric, etc are bastards to catch up with if you get short, even the smaller ones like insurance and rego can get a bit loose if they arrive when you are 22 days away from payday, but the regos due in 14..

I for one, have found my pay to be entirely adequate.. its frequency however leaves a lot to be desired..