Everyone gets excited about the salary week. Something around “you’ve worked and now it’s time to enjoy.” Most Nigerian organizations pay salaries on the last day of the month, usually 30/31. However, there are a few companies who think it is just right to pay employees on the 25th of every month. Whichever way it is, you can be assured that the time of the month will come.
Scrolling through social media, we have come across several people talking about how their salary is never enough and how it finishes even before the month’s end. Responses to these posts on the internet reveal how much people struggle with the situation and jokingly air their grievances online. Why does your salary get exhausted even before mid-month? If you finish your salary before month end, how do you cope? These are valid questions because people experience these things.
What is the idea behind anticipating salary week?
You are probably anticipating salary week because you have gone broke and you need money or you still have some money and it will not be enough to see you through the remaining days of the month. So, you start to count down, 10 days to salary week, 7 days to salary week, and 4 days to salary week until it is close.
If you are wondering why people countdown to payday, somehow, it provides much-needed financial relief as each day moves off the list. But, come to think of it, this act doesn’t come off as healthy. If you don’t want to keep being anxious about salary week, the way to go is to plan your finances.
How do you plan your Finances for Salary week?
What do you do with your salary when it finally comes? You have done all the countdowns, and it’s here. What next? If you have no idea what to do with your salary before it comes, it may finish before your next paycheck comes in again. Then you continue the cycle, just like that. (Let’s not even talk about the possibility of paying some debts too because chances are you have taken a loan already). You should not keep experiencing this, and we are not gatekeeping ways to help you. Read on.
Write a checklist ahead of the next month
What new stuff are you planning to buy in the month? What expenses are you cutting off? What home appliance do you need? Do you have plans to buy a new book this month? Are you getting your best friend a birthday gift from your next salary? Write down everything that you need. This will help you think of how much you may want to take out of your salary even before it comes. Note that this doesn’t mean that you will tick out every item on your list but it gives you a clearer ground to pick the necessary ones and leave out the others that can wait till later.
Create a budget for the month
If you are expecting your October salary, then you should start creating a budget for the month. People talk about a static budget that is probably expected to work for many months. Consider how your needs and wants may change over time, and then you will see reasons why you should make monthly budgets. Besides, if you bought a litre of fuel for N200/litre last month and there is suddenly a hike that says N450/litre this month, your budget has to change. This only explains that even the current cost of living in Nigeria can make your budget shift. So, while you expect your salary, create a budget, and then go back to your checklist. Pick from your checklist what your budget can accommodate; leverage “scale of preference.”
Stick to your budget strictly
The purpose of creating a budget is to have a guide and better control over your finances. It acts as a roadmap for your spending and ensures that you don’t overspend or run into financial difficulties. With this at the back of your mind, you stick to your budget, allowing it to prioritize where your money should go. Not only is it necessary to stick to your budget but to also fulfill the pattern of your budget. If your budget says that N15,000 is for transport and N10,000 for data, let it be so. Don’t think that you’ve exhausted your budget for data and can take a little from the money allocated to transport. If you do that, it doesn’t pose financial discipline.
Make plans for an emergency fund
Unexpected expenses may pop up, how do you manage them if you don’t have an emergency fund? So, while creating a budget, consider having an emergency fund. Financial emergencies can cause frustration and anxiety if you don’t have a way to solve them. Also, this may cause you to take loans that can be difficult to repay in the future. Hence, if you want peace of mind for yourself, cut out a part of your salary outside your budget and savings, and tag it “emergency fund.” However, it is important to note that impulse purchases cannot be an emergency fund, so you may want to avoid them.
Consider paying your debts
If you have taken a loan before your salary, consider paying your debt. Don’t stack up loans until they become too much burden for you. Instead, make plans to pay them, every single one. Even if you cannot create a checklist, it doesn’t matter, as paying your debts should be a priority. Most debts come with interest charges. The earlier you pay them off, the better for you. It also means that in subsequent months, you are barely clearing debts, but keeping good money to yourself. Also, you no longer have to bother about making monthly payments using your income.
Save
How do you make plans for long-term goals if you don’t save from your salary? For every of your monthly salary, a cut should go into savings. You may have plans to go abroad for your Master’s degree, buy a new laptop, retire, pay for an apartment, or even get married. Your “substantial” savings help you to accomplish all of these goals. If you think that you may find it hard to be faith with your savings, download mobile apps that can help you set up automatic transfers from your account to your savings or investment as soon as your salary comes in. This way, you don’t have to struggle with consistency. The autosave method saves you from putting up excuses for not saving every month.
