What Most Employees Do On Pay Days

You can say it's pay day when you see a long line in ATM machines, when you see a lot of people buying Star Bucks coffee or when you see a lot of deliveries to your office. Most companies give their employees two paydays every month. One on the 15th and the other one on the 30th. During these two special days of the month, I realized that there are things that most employees do during pay days. Let's find out! What the Common Employee do on a Pay Day

1. A New Gadget or a Travel Package.

Forgive me for eavesdropping but I always hear people talking about what their next gadget would be or friends looking for their next travel destination. Some would really save for the gadget that they really want and some would spend all their monthly salary for a new cellphone, new camera, or even a new laptop or desktop.

2. Treat the Team.

Some people are so generous that they treat the whole team when salary comes on pay day. Some employees are urge to treat the team because of promotions, employment anniversary, or even without celebrations.

3. Pay Bills. Pay Credits.

After getting the pay check, sometimes it doesn't reach their hands because it goes straight to bills. Credit card bills for most employees is on the top of the To-Pay-On-Payday check list. Additionally, some people have debts from their team mates or friends and that needs to be paid on pay day, right?

4. Ride a Cab Home. Luxury Mode: On.

The digits on your pay slip can cause great happiness that you feel very comfortable to spend it. We feel that we deserve something out of our hard work and we pay ourselves the luxury of life. We take a cab and avoid the uncomfortable traffic jam in the metro or sometimes buy our favorite dish on a fancy restaurant. I know everyone of us has his or her own definition of luxury.

5. Leftovers are kept.

If however, the employee was able to satisfy his or her cravings and something is left (and we are sure that this is a very very small amount), and wanting to save for his or her future - he saves! Though a little amount, some coins and extra bills goes to the piggy bank.

Which EMPLOYEE are you?

How the Not-So-Common Employee Spend During Pay Day But we also have those employees who have learned already. Those people who chooses not to spend extravagantly but put some action to the commitment to enjoy a happy and financially free life.

1. Keep 20 Percent As Savings.

They don't save leftovers but savings are their priorities. They follow the 70-20-10 rule where the 20 percent slice of their monthly income goes to savings. 20 percent is a good number to start with especially when you think it first thing when you got your salary.

2. Invest.

Employees who has mutual funds or stocks investment transfer funds right away after pay day. They put on more funds to their accounts through online transactions or through their financial agents. There are some people who even do this regularly month after month and does a cost-averaging strategy.

3. Trade.

A more risk-taker employee doesn't do it the easy way but after getting his pay check, he add funds to his trading accounts - can be stock trading or forex trading or even both.

4. Pay Mortgages. Pay Insurance Dues.

This kind of employees pay their bills, but aside from utility and credit card bills, they also pay mortgages to their real estate investment and properties and their regular due for insurance policies.

5. Opens New Savings or Investment Account.

Sometimes the current accounts are not enough. Once they have more funds for the current month, they open additional savings, mutual funds, stocks, forex and even real-estate properties to diversify their financial instruments. As the saying goes - don't put all eggs in one basket.

So, there you go. A short comparison between two different kinds of employees and what they do during pay days. Where do you put yourself? How about you, what do you do during pay days?

Image credits: http://www.alston.com

Mark Hugh Neri

Looking for financial planning workshop or for life and/or health insurance with investment options? Got questions related to personal finance? Feel free to message me at Money Gizmo (see link below)

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