Make that early December paycheque last through January
THE Yuletide season usually means a lot more spending than usual. From gift buying and home improvement projects to throwing in a little something for ourselves, the November paycheque just won’t stretch. In a bid to help employees enjoy the festivities of the season, many companies sometimes pay staffers as early as a week from the day of the holidays in December.
Unfortunately, this gesture, while the intention may be well-meaning, could mean that employees have to struggle to make it to the next pay period due at January month-end. Indeed, it means that you would have to survive on a bank account that is already on “E” over an approximately six-week period.
If you don’t want to have to feed yourself Ramen noodles until then, use these tips from banker Vaughn Levy on how to survive until the end of January when you got your December paycheque early.
Be more realisticStick to your budget
Reality may seem like the Grinch of Christmas, right? If you were to think about the reality of your financial situation, then you wouldn’t be able to afford all the financial obligations that the season seems to bring. But if you want to get to the January paycheque comfortably, Levy said that you need to stop thinking that financial responsibility is getting in the way of you enjoying the holidays. The debt or having to stretch to make ends meet in January is not worth the sacrifice.
Don’t go overboard simply because your account has more money than you would usually have at this time of year. Your boss might have paid you a little more as a courtesy at Christmastime, but this won’t happen in January, so unless you want to risk having to get a payday loan, don’t spend carelessly.
Don’t yield the temptations of unnecessary spending
You don’t need to buy new things for your house every holiday — it’s a waste of money. Instead, you may want to mix and match curtains, home decor other home accessories instead of investing in the same things every year. Levy said that it is important to know that your financial decisions can affect you in the long run, especially if you plan on using credit to cover your shortfall in January.
Cut back on paid entertaining
If may be the season for “braffing”, but braffing today will only mean a hangover and a bill at the end of the night. Instead of going out every night and buying overpriced liquor at these events, spend some nights at home and maybe have a bottle party where each friend buys some drinks and you can hang out, listen to music and enjoy a good vibe.
Avoid salary advances
It’s tempting to get into a financial rut because you know of the possibility of a salary advance. But Levy said that this would only be setting you up for financial debt. “Unless there is an emergency, avoid the temptation to seek an advance especially from loan institutions. These usually have high interest rates, so avoid them if you can,” Levy advised.
