It’s the end of the month. For many people this Friday will come as a massive relief. After a hard month of work you’re finally about to receive what you’re owed. I’m sure a lot of you have got your calculators out and calculated exactly what you should receive based on the hours you’ve done and some may even be clued up enough to use online facilities to work out their Student loan, NI and tax deductions. But who exactly are you when that direct deposit hits your account?
Are you desperate for that fateful day to come? Does your bank account cry silently in it’s poverty? Trust me you’re not alone.
Did you know that 35% of people in the UK routinely blow the majority of their wages in just one week? To take it one step further, 7% of people manage to do so in just 24 hours! It’s all mad, right? After splashing the cash these people are forced to rely on credit or overdraft to survive the rest of the month. LONG.
So when Quidco commissioned a poll in which workers were asked if they thought they were financially competent you’d expect the result to be less than flattering. Amazingly though, 88% of people said they were ‘money savvy’. I’ve done the maths; and it doesn’t add up. Either some people are in denial or they genuinely think spending all their money as soon as they get it is financially viable.
Now I’m not saying that people aren’t justified in wanting to spend a little of what they’ve worked hard for, not at all. However it is important for all of us to hang on to our common sense and not let a week of balling out leave you playing LWB for overdraft FC until the next payday.
On the flipside, there are those who hang on to their money. The other 65% of people who don’t blow their stacks within the first week can sometimes blur the lines between being thrifty and just being a tight arse.
Students! You may not be working at the moment, but I’m sure you’ve witnessed or exhibited a few of these characteristics when you get that text. All your common sense can fly out of the door faster than a 2nd year guy who spots a buff fresher. But that’s no way to live life. Just listen to ‘Money Mikes’ story in Episode 1 of the #RAH podcast.
As a young man with a yearning for financial freedom it is extremely important I understand how people react to income, the situations that lead to these reactions, and the practical steps I can take to managing my income in a financially competent manner.
I want to share what I learn with you guys!
Over the next couple of months I will breakdown the different attitudes and actions people have on payday. We will explore a few fictional scenarios in a creative way and I will try and develop practical solutions to any issues that may hinder people on their journey to financial freedom.
Keep your eyes peeled, your ears open and your pockets full in the meantime!
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Check out episode 2 below of our podcast ‘Reclaiming My Time’