What Does Payday Mean to You?
Posted by jefferson on Oct 25, 2012 in Eliminating Debt | 60 comments
There are many ways to measure our time on this planet: year by year, month by month, iPhone by iPhone. For many folks, the true measure is actually paycheck to paycheck. Recent studies show that as many as 40% of Americans fall into this boat, meaning that their bank accounts flirt dangerously close to zero every two weeks, with virtually no savings to protect against adversity. With statistics like these, it is easy to see why the number of families swamped with debt continues to rise.
I know that we have certainly been there. When you live paycheck to paycheck, you have no protection against the unexpected, and we all know that here in the real world you have to expect the unexpected. Before we started this blog, I had never heard of an emergency fund, but now I don’t know how we ever lived without one. Everyone needs to have at least $1000 in an emergency fund, but this is especially true for those who are living paycheck to paycheck. Without a safety net, what choices do you have when there are unexpected home or auto repairs, or someone in your family ends up in the hospital? You either have to pull out the credit cards and carry that burden into the future, or you have to decide what bills will get paid the next time that payday arrives.
I have been getting paid bi-weekly for as long as I can remember, and I still enjoy the feeling that I get when I look into my bank’s website every other Friday, and see that direct deposit has injected some life into my feeble checking account. But I will be the first to admit that payday doesn’t mean what it used to for me. I work very hard on my job, often putting in long hours, and doing the needful to make sure that I earn my paycheck. When you are buried in credit card debt, it can be absolutely devastating to see that paycheck decimated by credit card payment obligations, before you even get to enjoy it. These days, a good portion of my paychecks continues to go towards paying off debt, but there is a much different feeling around it. Instead of merely treading water, we are making real progress against our debt load, and every paycheck represents another opportunity to knock that shadowy beast down a few more notches.
For many Americans, payday means something else entirely. It means an opportunity to finally restock your empty cabinets with food for your family. It means that you can finally make a payment to get the heat or water turned back on. It means that you can finally purchase some shoes for your children who desperately need them. While I am proud of the fact that I work hard and earn an honest paycheck, I am humbled by the realization that I am truly blessed to be able to do so. Unemployment in this country remains uncomfortably high, and those of us who do have a regular paycheck coming in need to take the time to recognize that we are fortunate to be in that position.
I talk about this quite a bit here on See Debt Run, but it helps keep me motivated to think about our future debt-free life where payday will mean something new. We will finally be able to contribute an appropriate amount towards our long-term goals, like saving for retirement and funding our children’s college education. We will finally be able to tackle the home repairs that we have been putting off, and to take our children on a long overdue vacation. Even more importantly, we will be able to contribute a much larger portion of our income to charities and towards making the world a better place.
Friends and readers.. What does payday mean to you?
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Payday to me means that I am one step closer to finally paying off my student loans and my mortgage!
Michelle recently posted..Why Does It Always Rain When I Travel?
Similar to us.. Each payday is another big step towards financial freedom.
Awesome post. Payday for me means that I will be able to pay my car, electric and cable bills. It also means that I will be able to put some money away in an account that can later be used to book flights home to Boston to see my family and friends for the holidays. I too am always thinking that I’m lucky to even be employed. It really hits home when you see the effects unemployment has on people who have families to take care of.
Kelly@Financial-Lessons recently posted..Inexpensive Halloween Party Ideas
Thanks Kelly! We are lucky indeed to be able to take care of our needs, when not everyone is able to do so..
Greg and I work together and we both get paid on the 1st of the month…..so only 12 times a year. It is a highly anticipated event in our house and I get really excited planning what we are going to save and what we will use to prepay our mortgage. We use each payday to count down until our mortgage is paid off and we are entirely debt free!!! (35 paydays to go)
Holly@ClubThrifty recently posted..How I Saved at Least $50,000 by Buying New Furniture
Only getting paid once monthly (per household) would be a challenge for me, but I know that you guys have it covered well..
I like the countdown to mortgage payoff idea!.. 35 really isn’t all that many! Just think of the freedom you will have then..
It’s fine now that we are used to it. It has been this way for the last 6 years so now we are pros at it. Sometimes I just wish we were paid more often so that I could see more progress as each month goes on. Instead, getting paid just 12 times a year means getting lump sums and it’s not as fun. I guess I shouldn’t complain- I’m happy to have a job and be getting paid at all!
olly@ClubThrifty recently posted..The VIP Club Roundup – 8th Edition
Payday means first pay for the bills. Then throw as much as 15 percent between savings and an IRA. That’s pretty much it. If I still have extra after two weeks, I might deposit an extra $25 to $50 in savings.
-Christian L. @ Smart Military Money
You have a great plan, Christian!.. Many folks would tell you that you should put money into savings on payday, instead of at the end…
I’m with you. I used to eagerly await each paycheck. One year, I was so strapped for cash, I pushed my boss to get the W-2′s done early because I needed to file and get my refund NOW.
Now, my paychecks mostly just go into savings and it can take me a couple of days before I get curious enough to see how much I actually got paid that week.
Edward Antrobus recently posted..Top 10 Ways to Keep Your Stomach Safe From Unhygienic Food while Travelling
I have been there before as well, Edward.. Life is much less stressful when you aren’t eagerly waiting your paycheck so that you can eat!
We both get paid twice a month, and it’s usually not too much of an event unless Mr. PoP’s check is bigger than usual. I’ll ask and he’ll say, “Oh yeah, I got a bonus…” He forgets to tell me! But it makes for a very pleasant surprise when that happens. And then I get to be excited and figure out how much of our HELOC we’re going to pay off with it!
Mrs. Pop @ Planting Our Pennies recently posted..The First Rule of Improv: Yes, And…
The unexpected bonuses are always a nice surprise!.. My salary is very static for most of the year, so this is pretty rare for me.
Payday for me means simply that I can hang out with my friends without feeling like money has taken over my life. Very superficial, but at the moment, it is nice that fun is the only thing I worry about related to money.
Cassi recently posted..Debt Q&A Day: Pay Off Debt While Saving?
Good point, Cassi.. It is nice to be able to put thoughts and worries about money on the back-burner, out of sight, out of mind, for a while..
Payday still means I can breathe a little easier. I’m looking forward to my next one, in fact!
Kathleen @ Frugal Portland recently posted..Overheard at the Office
Indeed, Kathleen.. Today is Payday for me actually.. And I am a little happier I think with a little bit of money in the bank (altho all of it is spoken for)
As a server nearly everyday is a sort of payday for me. However, most of my co-workers don’t flirt with disaster every two weeks. Most actually flirt with it everyday. There are people who make $200 in a double and come in the next day with zero money for gas. They make good money, but the problem is they can’t keep it.
justin@thefrugalpath recently posted..How to Start Saving When You Can’t Afford to
Ah yes.. I lived the restaurant lifestyle at another point in my life, and yeah– its a hard partying lifestyle. Money comes and money goes..
I guess I don’t think about my paycheck too much anymore. We both get paid bi-weekly and on opposite weeks which is awesome. I used to when I was in college and eating ramen noodles two times a day. Now I just think of how much we can reduce our debt that week. We are way less stressed out than we used to be and that feeling is awesome. We can’t wait until our debt is gone and each paycheck brings us one step closer to that goal.
Stan @DebtsnTaxes recently posted..Political Polling: Drive-by Style
I think that as you start paying off your debt.. You can see your obligations start to decrease, and the stress really starts to lift.. It really is night and day from when we started this process..
Payday means in fact paying others: banks, leasing company, telecom, cable and so on. But anyway, even if the money stay for just a while in the account, gives me a cool feeling
Gekko recently posted..Thoughts about US 2012 Election
Paying others sucks.. But yeah, who we choose to pay is at least our choice. Nobody is forcing us to carry a cell phone or keep cable..
“When you are buried in credit card debt, it can be absolutely devastating to see that paycheck decimated by credit card payment obligations, before you even get to enjoy it. ”
Totally agree. Mine is student loan debt, rather than credit cards – but the frustration of seeing the bank account vault back into near-zero just two days after getting paid is awful.
Kerry @ Frugal City Girl recently posted..Hampton Court Palace: What Henry the Eighth’s Bachelor Pad Taught Me About Minimalist Living
No doubt.. But as you start to get those loans paid down.. Think of how great it will be to have total control over that money and where it goes.
Nice post. Now thsat my wife and I run our own business, payday takes on a bit of a different feel. For us, it means that we can put money towards all of our different goals that we have. We love setting goals for ourselves, both short and long term, and I find it makes the act of saving for each category that much easier.
John S @ Frugal Rules recently posted..Frugal Friday: Posts That Ruled This Week, the BCS Edition #3
I bet that as the business owners, payday involves a lot of pride on your part. You have truly earned the money that was coming in and deserve to enjoy the benefits..
Hmmm Payday is more a psychological thing imo since we really are earning that money each day, the cash just doesn’t transfer until the end of two weeks…yikes I sound like an accountant there don’t I? Okay in all honesty it gives me a psychological boost to see that paycheck go in my bank account, my HSA, 401k, etc. And that’s why I love payday.
DC @ Young Adult Money recently posted..Home Depot has really good…Books???
You are right, of course, DC.. With your accountant brain and all
But yeah, there is a satisfaction to seeing your account propped up, no doubt.
My wife and I have actually talked about this before, but payday to us means nothing more than a budget meeting to pay the bills. She often doesn’t even know that she has gotten paid and I’ll have to remind her that weekend that it’s time to review the budget and get the bills paid for this 2-week period.
Jason @ WorkSaveLive recently posted..5 Ways to Save Money on College Textbooks
You know that things are going well for you financially when you don’t even notice that you got paid
payday means NOTHING to me whatsoever. I don’t have a “regular” job.
My income is always sporadic and wildly variable.
Although, as my investing income increases there are days I tend to look forward to each month. Not because of the payouts (everything automatically re-invests) but because I have to update my spreadsheet increasing the monthly yield calculations.
thestarvingartistcanada recently posted..Financial Advisers or DIY
Yeah.. I hadn’t thought about those that just do contract work without any real schedule.. Your paydays would just come immediately after each job is complete, and there would be no guarantee where the next one would come from.
Payday brings relief because I can pay bills. I can’t wait until payday brings satisfaction because I’m saving rather than paying. I does also means food and life necessities. I look forward to the day I actually forget it’s payday because my life is so together.
Catherine recently posted..Weekly Reads: 26.10.12
Me too Catherine, me too.. Even in my current financial state.. Payday still means those things.. Relief is a certainly an appropriate word..
Payday used to mean just getting by, in time we had wiggle room, but still relied too much on credit cards. 4 years ago we got serious after taking a Financial Peace course and today we are totally consumer debt free and paid a year ahead on this mortgage which in a short while will be our rental, and almost a year ahead on our new home we will be moving to in the Spring. I’ve diligently built our emergency fund to currently 4 months pay and still growing. When we got started really making an effort with our budget it was discouraging, but as we made it a family project it was amazing what we were able to do including paying for an international adoption and my oldest daughters wedding all debt free, while staying on course. We’ve just learned to be creative with funds, live without and got creative in building income. It can be done and we are still on our way to completing our goal of saying we are totally debt free! For us this demonstrated the power of a common purpose.
Lynda recently posted..Anniversary Celebration
Lynda– Your story sounds like it is straight out of the margins in the Dave Ramsey book.. but I know that this approach absolutely works.. We are all-in on the same path, and I feel the debt falling off my of shoulders a little more, every month that passes..
Payday for us means throwing a good portion of it at our consumer debt. I really and truly cannot wait for the day when that debt is gone and we can focus on funding our retirement as well.
Mackenzie recently posted..Money Well Spent
Me too Mackenzie.. Funding my retirement in an appropriate way is my top goal once this debt is paid off..
Pay day has less impact on me than it used to. I used to really look forward to it because then I could spend it! Now it mostly gets slotted away into various savings and investments, so it’s pretty boring. I do still look forward to paying my student loan every month though.
CF recently posted..Being poor in North America
Some would say that it is important to leave yourself a little bit of “fun money” each payday as well.. Time will tell how much we really do that, one this debt is free and gone.
I’m thankful we learned how to manage our finances at 21/22 years old so we could start paying off our debt after our very first paycheck. It was a bummer watching one of Dave’s biweekly paychecks go right to student loans but we knocked it out in 9 months and we get to see our money work for us now! It brings a lot of peace knowing I don’t have to count down the days until our next paycheck.
Jessica @ Budget For Health recently posted..Budget review: July – September 2012
Getting to see your money work for you, instead of just making the bank’s richer, is a very rewarding feeling.. I can’t wait for that day!
Payday means to me Save day. This is what I tend to do first, then I pay down any other bills. I have to admit on payday it is much easier to get to work as that increases the motivation a bit more.
RichUncle EL recently posted..The Best Personal Finance Tips
Payday is when all my auto transfers go into my different savings accounts. So I like payday.
It is also when I pay some of my bills, so in that way it sucks
Otherwise it is pretty much like every other day, other than it is Friday and the start of the weekend. Shazam!
Jason Clayton | frugal habits recently posted..Five Ways to Help your Kids Learn about Money
I see payday the same way you do. One step closer to debt free and small gains in net wealth and savings. I get excited to see my debt go down and I cant wait until April’ish of next year when my last consumer debt is gone(auto loan).
Adam Hathaway recently posted..Peer To Peer Lending, What it is and why you need to consider it. Part I
Payday for me is the day that all the hard work and all the emotions happy or sad were worth it. It motivates me to work smarter and that I know that those pay cheques are what will keep the roof over our heads, food on the table and clothes on our backs. It’s one step closer to our dreams. Great post. Mr.CBB
Canadian Budget Binder recently posted..What Products To Stockpile For Maternity Leave
Payday means paying bills, depositing money into retirement accounts, and saving money.
SavvyFinancialLatina recently posted..Money Should Make Money Right?
Man I miss regular paychecks SO MUCH. At the time I was getting them, I couldn’t fully appreciate the security that provided me. You don’t know what you got till it’s gone.
Budget and the Beach recently posted..My Skype Job Interview
Right now out family is living paycheck to paycheck and we hate it! We’ve been working for about a year to better out financial situation, and are making progress, but I look forward to the time when this stress doesn’t recur every 4 weeks.
Thanks for the great article!
What a great post! For me, it means that I’m one step closer to being debt-free. That’s it. Nothing more. I’m excited to see what it means after that though…
Cait recently posted..TGIF! Thoughts for the Weekend
Luckily we’re at the point where spending is no longer affected by when we get paid.
We get paid on the first of the month and the monthly bills are scheduled to be due soon after. So payday means I get to do my happy little OCD balancing the checkbook thing. I’m a little bummed this month because I’ll be out of town on the 1st and will have to pull from savings to checking before I go and I’ll have to overestimate just in case.
Nicoleandmaggie recently posted..When I am an old tenured woman
Payday for me means, we’re one step closer to being out of debt. I’m always so grateful too because my husband experienced almost two years of off again, on again employment. We’re so close to the finish line, I feel excited to be closer to a debt free lifestyle.
Jackie recently posted..How to Help Your Husband Thrive During Unemployment
I am blessed too with a comfortable financial situation, so payday means a lot of internet banking, paying mortgage and loans, reorganizing and optimizing accounts, setting up a fun budget for the month and updating my net worth.
Pauline recently posted..Friday recap, a festival and a transatlantic flight
Aside from paying the bills, payday to me means I got rewarded for doing my job. It’s an even bigger reward when I get my regular paycheque + my OT paycheque. It means more money to set aside for retirement and our new house.
Random question: Do they still have that chocolate bar called PayDay. Or did I imagine the whole thing?
MakintheBacon$ recently posted..All Aboard The Inca Trail Express- Part I
Since we got a month ahead on our finances, I have barely noticed payday
But when we were budgeting bi-weekly, it was stressful. We had to stagger our bills in such a way as to pay them at the right time, and my checks always came in at different times. Honestly, I could not imagine living that way anymore.
Payday to me means I get to enjoy the fruits of my labor, MINUS what I invest in my savings account. Being a college student, I recognize that I will need this money a lot more when I’m on my own and without the support of my parents. This is why I make a conscious effort to save as much as possible, and then figure out how much money I have left over to spend.
Michael Duffy recently posted..Best Free Financial Resources to Simplify Money Management
Pay day for me is sporadic since I work for myself. But it does mean paying off my debts and getting closer to my goals. Right now pay day means paying off my student loans, so I can feel really free to pursue my interests.
Payday means deposit day for me. I usually try to put aside my bill money, and my savings money before I spend anything what so ever. I have lived paycheck to paycheck and it’s just not a good way to live. At one point I had put aside $3000 and ended up quitting work because the stress was making me physically ill. That money held me over for 4 months until I found a job I really enjoyed. I’m a full time student and a full time employee and I have learned over the years it’s necessary to be prepared for the worse. It’s important to put aside at least $1000 for emergency, but the reality is that it’s best to put aside at least 3-4 months of expense-worth aside in case something does happen. People have accidents all the time, and sometimes your job won’t help you out so we all have to be prepared.
Payday means I get to eat and do laundry.