The best way to manage your 40-day paycheck

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“As companies are gearing up to pay final salaries for the year, staff are reminded that the benefit of being paid on the 15th of December has a sharp edge to it - namely that the next pay cheque will only be 40 days later, at the end of January in 2018!! Typically, like other companies, we see a surge of staff loan requests in early January and essentially it is because people run out of money because of lack of planning” says TSiBA CEO, Adri Marais, who also shares the following sage advice courtesy of Liberty Life (


Getting paid earlier than usual brings welcome relief during the festive season when we will inevitably spend more than usual. But before you rush out to blow your salary, remember it needs to last up to 40 days before your next salary comes in!

Statistics show that there is a significant increase in the number of so called “pay-day” loans around the beginning of January. This is because households have spent that early December income before paying their end-of-month bills. In many cases, they have not put money away for January expenses. Take the following steps if you want to avoid a financially stressed start to 2018.

Prioritise your regular expenses and pay all your end of month bills as soon as your salary hits your bank account. An early payment into your mortgage or vehicle finance has the added benefit of saving on interest. If you have debit orders that you cannot change, calculate how much you need to keep aside. If you’re not disciplined enough and worried you may end up spending the money, put it into a savings account linked to your bank account.

Hot tip: Make a note to transfer the money back into your transactional account before the debit orders are due.

Make provision for January expenses such as school fees, uniforms and books. You can also transfer that money away into your savings account to ring-fence it.

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