I am counting the hours (days) to payday.

My debit orders are starting but my salary isn’t paid into my bank account yet.

My debit orders went off now there’s nothing left.

Does this sound familiar?

Then it is appropriate to look at solutions for these problems and avoid the payday blues.

1. The first  critical step is to draw up a personal budget.

Plan your budget carefully and make sure that you include all income and expenditure:  make a list of all the money that is paid into your account and  also list all the money that is paid from your account.

It is important to break down your budget for groceries and entertainment into smaller budgets. This will help you to understand  what your daily and weekly requirements are for these expenses. Do not spend more then your daily allowance. This will ensure that your money last until the next payday.

2.  The second step is critically just as important: Save

Include in your budget a realistic amount that you want to save each month.This amount must be transferred to a saving account on payday.

3.  The third step is to manage your debit orders and outstanding debt.

Make sure that there is sufficient funds in your account to cover your debit orders.  The golden rule is that there should be at least 10% more in you account than the amount of the debit orders on the day(s) that the debit orders are settled.

There are two approaches in the management of your debit orders:

  1. list all the debit orders (with their date of payment) in your budget so that you can determine if they have been deducted from your account and that you still have sufficient funds; or
  2. arrange for your debit orders to be deducted 1 day after your pay day.

It is very important to manage the rest of your debt prudently.  The ground rule for debt management is to pay off your most expensive debt first- that means debt with the highest interest rates – normally credit cards and short term debt.

By implementing sound management of your debit orders and other debt you avoid the risk of a bad credit record because debit orders were rejected.

4. The last critical step is to reduce your expenditure

The following pointers might assist you in this regard:

  • Review your short term insurance and cancel any unnecessary items.
  • Review your vehicle insurance and make sure your vehicles are insured at current retail value and not at cost price.
  • Try to cut back 10% on your entertainment expenses.
  • Make a grocery list before you buy your groceries and do not buy anything that is not on the list.  Remember to take a snack at home before you go shopping because an empty stomach can influence to buy unnecessary food because your hungry and not because you need it.
  • Do not buy  luxury items impulsively.  If you want to buy a luxury item, rather discipline yourself to wait a week and see if you still feel that you need the item. Only buy the luxury item when you have saved at 25% more than the ranking price.

In short: your financial wellbeing is dependent on good planning but more importantly – self discipline and self control.

Remember that this is not extensive advice and for more information it would be best to speak to your financial advisor.