6 simple steps to take each pay day
Stretch your pay further, six simple steps each pay day.
No matter whether you’re paid weekly, fortnightly or monthly, a little forward planning can help you stretch your pay further, get to know your money habits better, and plan ahead.
Here are six steps to try every time you’re paid to get even more from a much-loved pay day.
1. Check your payslip is accurate
Underpayment of wages in Australia may be more common than you realise.
The Fair Work Ombudsman recovered more than $532 million for 384,805 underpaid workers in 2021-22 – a record sum of back-paid wages and entitlements for a record number of employees.
Surprisingly, more than half the year’s recoveries came from large companies, who back-paid nearly $279 million to more than 267,000 employees.
If you’re not sure how to work out whether you’re being paid correctly, visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance.
2. Make a note of key events
Budgeting for upcoming events, such as birthdays, maybe a concert, or even a long weekend, helps you set aside sufficient funds in your budget to tide you over to next pay day.
That way you can sail through each pay period without having to scratch for cash for a couple of days before your next pay packet arrives.
3. Put bills on autopilot
Instead of leaving bills as the last priority for each pay packet, think about setting up automatic bill payments. It’s like putting bills on autopilot.
Just be sure to check you have sufficient funds in your account to cover each bill, then sit back and relax, knowing you don’t have to waste time staying on top of bills.
If large, annual bills such as car insurance are around the corner, aim to tuck some money away each pay day to cover the cost.
4. Stash some cash in an emergency fund
There’s a lot to love about growing rainy day savings. It gives you the confidence of knowing you can handle unexpected bills or costs. Better still, higher interest rates on savings mean you have to do less of the heavy lifting growing your emergency fund.
Be sure to check you are earning a high return on your savings. Some savings accounts only pay a top rate for an introductory period.
5. Review your spending from last pay period
It’s always a good idea to take a quick look through your everyday account to check the transactions for each period.
This can be a great way to understand how much you’re really spending (and where you may be able to cut back). It can also be a quick way to check there are no unfamiliar transactions.
6. Top up your savings tracker for those bigger goals
If you haven’t already downloaded the Easy Street app, it’s definitely worth getting onto. You’ll find our app is packed with great features including a handy Savings Tracker. It helps you set up savings goals for the big ticket buys you’re aiming towards. It’s a great way to monitor your progress and stay motivated!
If internet banking is more your style, consider setting up free balance alerts so you can be reminded when you reach your savings milestones.
With your six steps sorted each pay day, you’ll be on track to have your finances in great shape through 2023!
Last updated: 22 March 2024
The information contained in this article is only correct at the point of time of publication. It is general information and has been prepared without taking into account your personal circumstances, objectives or needs. Please consider if this information is right for you before making a decision to acquire any product.