How about making your salary package more interesting to you?

We get happy every payday. And after that, we get anxious.

That’s okay. It has been happening for ages. To tell you the truth, we humans will be eternally worried with money, not for the lack of it, but also for receiving it to fund our needs and chores.

But, here is where you need to learn something effectively. Your salary is definitely the option to save you money and fund your life operations. But to try out something different using it to initiate a good spending habit and save money is not necessarily wrong.

We had a word with Mark, from Kentucky, who took the help of our lending services a few days ago. Although we had experienced a fine professional relationship, Mark has stated to us something unique about payday matters, which made the content of this blog you are reading now. 

Let’s learn more.

What You Can Do after Each Payday to Maximise Financial Productivity

We got in touch with Mark in the process of his application about an Emergency rent loan bad credit in the US. By then, he had been a young professional and faced an issue paying rent for a two-room rental deal he took in New York to stay close to his office.

On speaking with him, we came to know that Mark’s dad has been a finance professional, and he has already taught Mark a few ways to maximise the productivity of one’s salary package.

“Old wine tastes good. I faced a rental issue now because I didn’t actually make a fund for such investment options. But it is true that I’m taking this loan out to use it in coordination with my salary package to make the most out of the latter. You see, I don’t observe the salary in the way general people do. It is, to most of them, a tool for survival. But, if you don’t experiment with it at least a bit, then you may not discover its full potential. That’s what my dad taught me“, he said.

Out of simple, professional curiosity, we asked him the strategies he used and the ones his dad explained to him. The conversation between us led to the following points when you want to check a few things after you get your salary.

  • Reinforce Saving Goals
  • Review Paychecks of the Last Month
  • Make an Estimate of Bills
  • Done? Now Automate Paying Those Bills
  • Check if Money Is Saved
  • Now Use that Money to Start a Fund for Emergencies & Investments
  • Pay off Debts (if Any) from this Fund
  • To  Conclude: Treat Yourself Wisely Using Your Savings Account

Hopefully, you are already interested to learn more about them. You can do so by reading more.

1 – Reinforce Saving Goals

Although this point sounds more psychological, it is the thing you should remember every time your payday arrives.

It is a kind of method that you can use to increase your savings every time you get your salary.

In this regard, the best thing to do is to write down a note before 2 to 3 days of your payday. You can read the note after you receive your salary. Replace it with a new one after each salary. Keep the note reinforcing and effective.

You would see the real difference in a few months.

2 – Review Paychecks of the Last Month

We need to constantly update ourselves in the way of maintaining our finances (and a lot more, actually).

In order to do that, sometimes we need to make rectifications.

As in?

As in the previous month’s paychecks and bills, once you receive your salary (or you can do that a few days before your payday), go through your financial statements, utility bill payments; essential expenses; investments and credit card payment history etc.

If you see that there is trouble somewhere on these calculations and that you are overspending money, then immediately review them and cut the expenses right away.

For example, if your credit score is low, then you can take out a pre approved personal loans bad credit to improve that credit score.

Now use the revised calculations to fund your bills and make those essential payments. See if you have got some money saved or not.

3 – Make an Estimate of Bills

Often it is a problem that we know we have to pay those bills we talked about in the previous point, but we miss out on making the proper estimate about them.

Yes, we cannot be blamed too because some bills, such as charges for electricity or gas for your car, are variable in nature.

However, you can make estimation about them, right.

Here is what you can do,

  • Calculate all the bill payments that are not variable. Add them up and fix an amount you will know that you have to pay at the end of each month or week.
  • Make an approximate value of variable costs based on the idea you get from the previous month’s paychecks. Keep an extra amount of money reserved for additional expenses (if any).
  • Always review the pricing and the charges for services and products you use. If you see any price drop or rise in them, immediately go and change your budgeting.

Following these ways will ensure you get an idea of the payments so that you can do them efficiently. This step will also help you with the following point.

So, scroll down.

4 – Done? Now Automate Paying Those Bills

Use an application to automate the non-variable costs at the end of a month.

The non-variable costs are not the thing you need to worry about. But paying them in time can help you get the best ROI.

For the variable costs, you can just check the amounts and pay them. But, you do need make cross-check with the previous month’s paychecks. 

5 – Check if Money Is Saved

When all these processes are going on, it is your duty to check whether or not the money you are spending is allowing you to save a bit as well.

If you see that making some sort of adjustments is helping you put aside some extra money, then it is time you put that money (even if a few dollars) in your savings account.

6 – Now Use that Money to Start a Fund for Emergencies & Investments

A good way to put the money to good use is to use a part of it to make a separate account and then keep on investing in it.

After your payday (if you do not have an account of this kind), go to the nearest bank or financial institution with the minimum deposit money in hand to make an emergency account.

You can also choose an online-only account because it can offer you discounts and other rewards for opening an account with them.

When it is created, allot a part of your salary to the account and automate it to make savings mandatory.

What would you do with this account? Well, you will manage your emergency payments and significant investments using it.

7 – Pay off Debts (if Any) from this Fund

So, you have got debts going in at the back of your head?

Why feel bothered as you have already got your emergency account to make those payments?

But you made the emergency account a few days ago, and it has not probably garnered a lot of money.

Plus, you can be dealing with multiple debts, which is a bit complex to manage. It might be more complicated if you have a bad credit score.

In these matters, taking out a debt consolidation loans for bad credit can help you a great deal. You can make all the debt payments into a single loan term with only one instalment plan and interest rate.  

8 – To Conclude: Treat Yourself Wisely Using Your Savings Account

Now that you have saved some money in your savings account and ensured you have got an emergency account to deal with financial problems or necessary investments in life, you can make some space for yourself and give yourself some financial freedom.

You can do that by enjoying life. So, go ahead and make time to watch that movie and or make your dream vacation possible.   

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