Weekly Vs Monthly Pay
Posted by kyle, on July 16, 2012
We all look forward to payday, when financial pressure takes a temporary reprieve. Yet not everyone has the same pay day, or even payment structure. While some opt for a monthly salary, others will have theirs paid every week. So the question is, is either of these options better than the other? Is it better to be paid weekly or monthly?
Both options require some form of sensible planning and commitment. Many people will agree that a monthly pay structure can leave your financial month feeling a little unbalanced, and a lot of people feel the strain as they try to stretch the last of their pay across the last week of the month. Having everything paid in at the beginning of the month can make it easy to spend large now, and feel the pinch later. Careful planning and forethought is required to ensure finances are covered for the month ahead.
However, a weekly pay structure has its own challenges, such as trying to pay larger bills when the salary is paid in smaller instalments. Also, having money coming in each week can make it a little too easy to blow your budget, knowing in the back of your mind that there is more coming in shortly. It is easy to fall into a trap of playing catch-up.
In both cases sensible spending and a structured budget is required to control where your money is going. Consider your regular outgoings, and decide what needs to be covered first. These should be covered in full as soon as you get paid. If you’re paid monthly, then it’s easier to ensure these are paid outright, or that the money is at least put aside for them when the bills come in. If you’re paid weekly, much more restraint is required as these bills will still need to be accounted for before anything else can be bought. While bills and payments work on a monthly basis, being paid weekly can make it a little tricky to calculate and control what gets paid when. Try to be stringent towards the end of the month to cater for the month ahead, so you’re not always behind in your budget.
Of course, in most cases the option of what pay structure you’re on is not something you have a choice in. But it’s worth knowing there are pros and cons to both types of structure. While a monthly pay packet can leave the last half of the month a little too tight for comfort, being paid weekly can also have the effect of playing catch up with your bills, and having to manage your money more constantly. Some people find one or the other is more manageable but overall, it seems that, if managed well, a monthly salary is somewhat more beneficial. Once you have your full pay up front, it’s all about making sure you plan it out to cover your initial priority outgoings, and the rest spread out over the rest of the month.
This article was written on behalf of SnowdropKCS leading UK provider of HR Software Systems