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5 steps to make on payday

What is the first thing you do when you get paid? Having your account refilled might make it tempting to go on a shopping spree, or out celebrating. If you have financial goals, however, here are five steps you can consider implementing when your hard-earned cash hits your account.


Paying your rent or mortgage should be your first step. If your rent day doesn't coincide with your payday, you can ask your landlord to move it. Bills should be paid promptly to avoid fees. Regardless of your payback strategy, make sure to pay at least the minimum payment on your loans. All these expenses are non-negotiable, which it's wise to just pay it off right away so you don't really "see" the money.


Did you set a savings goal for 2020? If so, divide this by 12, and set aside this amount. You should keep your savings in a different account, maybe even in a different bank. Do some research on where you can get the best interest rates considering the amount you're saving and how long you intend to save it for. There are different saving products on the market, including easy access savings, ISA (UK), and fixed-rate bonds. It's definitely worth doing some research on this!


Do you have long-term savings goals? If so, consider investing! Do your own research before you start investing, and read our post on it here. When deciding the amount of money to invest, consider that you should keep a long-term perspective, so any money you'll need in two years are better served in a high yield savings account. That being said, if you can set aside an amount monthly for the long term, and do it correctly, investing is a great way to make your money work for you!


Events like weddings, holidays, or Christmas often sends people into debt. Shockingly, about 70% turns to credit to cover the cost of Christmas, which takes on average seven months to pay off. These events can and should be planned for! With the average UK household spending £800 more in December than other months, look back and see how much you spent, and start a sinking fund for Christmas 2020! Putting e.g. £42 into this sinking fund a month will give you £500 extra in December, all financed for!

Tip: Use the Preparning for 2020 worksheet to plan for big events this year.


Once you've paid your bills and put your savings aside, its time to look into what you are planning to spend in the coming month. Start by looking at your average spending over the last three months, which you can find in your bank statements. This can include food, socialising, transportation, cosmetics, clothes, travel et cetera. A good tip is to move your spending money to a separate account to make it easy to track how you are doing throughout the month. Anything "leftover" can be put towards debt, in savings, investing, or perhaps a holiday sinking fund!

What is the first thing you do when you get paid?

We are not certified financial advisers! The articles and information made available on Zero Time to Waste are provided for information and educational purposes only and do not constitute financial advice. You are advised to consult with an independent financial advisor for advice on your specific circumstances.

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