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Payday has finally arrived – what is the first thing that you do? For many people, payday is a time to splurge, but this is not a good habit to get into and instead, you want to have a system in place to manage your money for the month. This post will offer a few tips for managing your money when you get paid so that you can make it last, add to your savings and create financial stability in your life.

Don’t Spend it All

It is tempting to splash out when the money hits your account, but this can make the rest of the month harder to manage. You should avoid impulse purchases at all costs and plan ahead for the month instead. If you feel the need for a treat on payday, you should consider something that will be affordable yet still gives you a satisfying feeling.

Put it Into Savings

One of the best things to do is to put money into savings as soon as it arrives in your account. You could even automate this so that you have money going directly into savings on pay day. This is smart because it will remove the temptation of splashing out and ensures that there will be money put aside each and every month. You can compare savings accounts options online to find the best option for your needs and the highest interest rate. Ideally, you want to leave this money to grow over time and avoid dipping in.

Create a Budget

You should also use a budget as a way to control your spending. People often end up scraping by towards the end of the month because they do not have a system in place for controlling their spending. Therefore, you should calculate what your essential outgoings are (rent/mortgage, bills, food etc) and how much you want to save each month so that you know how much you have for non-essential spending. You should then divide this amount for the weeks until your next payday so that you know how much you can afford to spend each month. Of course, it is best if you do not spend every penny each month so that you can put more aside (or roll it over into next month’s non-essential spending).

It is easy to go a bit wild on payday and splash the cash, but this is always a mistake. If you are someone that finds yourself struggling to get by come the end of the month, you should put a system in place that will help you to control your spending. The above will help you to make your money last, set money aside each month and cut down on frivolous spending.