My Payday Routine | What to do when you get Paid


So, everybody loves payday, right? A little while back, I watched a great video
by Jaspreet Singh of the Minority Mindset called “Don’t do these 5 things with your
money” or 5 don’ts when you get paid”. I’ll link to it in the description box below. So that video got me thinking about the things
that you should be doing with your money. In today’s video, I want to walk you through
a little bit of my payday routine and share with you 5 things that I do (and that I think
you should do as well) every time I get paid. If you’re new around here, welcome! On this channel we help young adults just
like me make sense of all things money so, if you’re into that, come join the squad
by hitting that subscribe button and clicking the bell icon to turn on post notifications
so you never miss when we upload new videos! So, to provide some context for this video,
I am a full-time, salaried employee and I get paid semi-monthly, once around the middle
of the month and again around the end of the month. So, payday for me usually begins with my paycheck
hitting my bank account at some ungodly hour of the night. Wait. That’s a lie. Payday for me usually begins with an email
and notification from my credit card company letting me know that my tithe has been charged
to my card. It honestly sometimes happens the day before. Because I’m paid semi-monthly, the specific
day of the month that I get paid changes, so that’s usually how I remember that it’s
even payday in the first place. 1. The first thing I do once that money hits
my account is to make sure I get paid the correct amount. For me, it’s pretty easy because I’m salaried
so the amount I get paid should be the same every paycheck. If it’s not, I definitely investigate to
find out why that is. Reviewing your paystub is very important,
especially if you’re an hourly employee. You should check your paystub to make sure
your gross pay, deductions like retirement contributions etc. and tax withholdings are
correct and we can definitely do a more detailed video on how to understand your paystub if
that is of interest to you guys. So, let us know If you want to see that in
the comments! 2. I compare what I got paid against my budget. If you want to learn more about my budgeting
process and check out my budget, I’ll link to that video in the cards. This step is especially important if you have
inconsistent income – if you’re an hourly employee, freelancer or entrepreneur. If you made less money than you thought, that
means that you need to go through and make adjustments to your budget or strategize how
much money you need to make in your next paycheck to get you back on track. If you made more money than you anticipated,
this is the time to start making intentional decisions about what to do with your excess
cash. We talked more about how to make intentional
spending and financial decisions in a prior video as well. 3. The third thing I do when I get paid is that
I take care of non-negotiables before spending any discretionary money. As I alluded to in the beginning, my tithe
gets auto-charged every payday. My savings are also on auto-transfer to my
outside savings account. Those two items are non-negotiable for me. I also have other bills that get automatically
drafted like my student loan payments, my rent and my internet. Because what we don’t want is to go eating
out or spending money on travel and not have roof to live under. #Priorities
4. The 4th thing I do is I track my expenses
throughout the month. I personally use an app called Goodbudget
to do this. The reason I use an app is because like most
people, my phone is typically always with me and it only takes about 30 seconds of my
time to input a transaction. Whenever I spend money anywhere, I make sure
that I input it into my app so I know how much money I have left to spend. A big mistake some people make is spending
according to the amount that you have in your bank account. This isn’t very effective because you can
easily lose track of certain expenses. An added benefit of intentionally tracking
your expenses is record-keeping, especially if you’re the kind of person that likes
to use cash. I can’t tell you how many times I’ve wanted
to look back at how much I paid for something months and even years prior and was glad that
I had my own personal records to search through and easily find the answer. I’m not saying you need a budgeting app. For example, Meshack likes to track his expenses
in an Excel spreadsheet, which is definitely not the route for me. The important thing is to have a system to
track your expenses that can work for you. 5. At the end of the month, I do a quick budget
check-up. When I do my checkup, I ask myself a couple
of questions. Where did I spend most of my discretionary
money? Where did I have excess cash at the end of
the month? Remember, just because you have excess cash
at the end of the month doesn’t give you license to then spend it mindlessly. This is another opportunity for some intentional
decision making, which is really the overarching theme. Maybe you have a large expense coming up that
you may want to leave some padding for. Like for me, I can never manage to remember
when my Amazon Prime membership is set to renew. I just wake up and my money’s gone. Or maybe you might to decide to pad your emergency
fund or set a little something more aside for car maintenance. On the flip side, maybe you realize that despite
tracking your expenses, you still managed to go over budget or found it hard to stick
within your budget. If that’s the case, what adjustments do
you need to make? For example, in an early version of my budget,
I had underbudgeted for gas. Once I realized that I was consistently going
over budget, I made the decision to increase my budget and take that money from elsewhere. And this doesn’t have to take long time! I personally quickly scan my budgeting app
to get an overview of the balances I have left in each line item. If you realize you need to make a change,
take a couple of days to think over your priorities and come up with a game plan. Remember, you work hard for your money. Doing these 5 things when you get paid will
help you get on track to financial stability and freedom.

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