Author Topic: Horrible xmas advice in the Independent.  (Read 4910 times)

mveill1

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Horrible xmas advice in the Independent.
« on: December 08, 2014, 01:58:47 AM »
I don't know where to start. Independent is a decent paper, but this article is just horrible. How does changing the timing of xmas pay help with the cost? And if it's so important to stay within your agreed "special xmas overdraft", why not resolve to not go into overdraft in the first place? Anyway, enjoy:

http://www.independent.co.uk/money/spend-save/money-insider-an-early-christmas-payday-can-be-a-godsend-but-there-are-downsides-9907676.html

robotclown

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Re: Horrible xmas advice in the Independent.
« Reply #1 on: December 08, 2014, 05:46:16 AM »
This is bizarre.  Want to spend money you don't have?  Ask your bank nicely! 

And this advice naturally assumed you already maxed out every credit card.  Because Christmas!

MrsPete

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Re: Horrible xmas advice in the Independent.
« Reply #2 on: December 08, 2014, 06:32:56 AM »
Ask your employer to pay you early in December?  I can't imagine how that conversation would go. 

However, by twist of fate, I am paid early in December.  Why?  Because we teachers are paid once a month -- on the last day of the month -- and since our last working day of the year tends to fall around the 20th-22nd, we are paid on that last working day. 

I say it's neither here nor there; I couldn't care less, but many of my colleagues say it's a long haul 'til January 31st. 

mveill1

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Re: Horrible xmas advice in the Independent.
« Reply #3 on: December 08, 2014, 06:49:38 AM »
It's quite standard to be paid early in the UK, or at least widespread. Probably originates from the fact that banks are closed at xmas, and these operations were perhaps less automated in the past... so may as well pay early rather than potentially late. Dunno.

Personally I perceive it as a nice gesture, I like to see the amount early in my account as it sort of puts me in a xmas mood, looking forward to taking a break etc. But it never occurred to me that it should help you pay bills, it only affects the timing not the quantum!

The person that wrote this calls himself a financial adviser.

BPA

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Re: Horrible xmas advice in the Independent.
« Reply #4 on: December 08, 2014, 06:53:25 AM »
Ask your employer to pay you early in December?  I can't imagine how that conversation would go. 

However, by twist of fate, I am paid early in December.  Why?  Because we teachers are paid once a month -- on the last day of the month -- and since our last working day of the year tends to fall around the 20th-22nd, we are paid on that last working day. 

I say it's neither here nor there; I couldn't care less, but many of my colleagues say it's a long haul 'til January 31st.

I'm a teacher and I'm getting paid six days earlier too.  I will have the opportunity to prepay more of my mortgage as a result, so I like it, but I get what you mean.  I won't be whining about the long haul between December 19 and January 24.  It's a bit of a bonus actually. 


Neustache

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Re: Horrible xmas advice in the Independent.
« Reply #5 on: December 08, 2014, 06:58:53 AM »
If/when I become a teacher, I'm really glad I will be FI by then.  I will truly not be doing it for the money, although, after being a SAHM for years prior, that 36K starting off is going to feel like a fortune to me!

My parents have to pay their workers on Mondays, weekly, otherwise they would run out of money after the weekend.  I've lived paycheck to paycheck before, but dang it, that's silly.

infogoon

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Re: Horrible xmas advice in the Independent.
« Reply #6 on: December 08, 2014, 07:27:49 AM »
My parents have to pay their workers on Mondays, weekly, otherwise they would run out of money after the weekend.  I've lived paycheck to paycheck before, but dang it, that's silly.

One of my interns many years ago told me that his father ran a roofing business. The standard in the industry, at least around here, was to pay in cash at the end of the workday; generally, the crew would go drink it up that night and come back in the morning, hungover and ready to climb ladders.

That intern went on to earn an Ivy League law degree. He said there's no better motivation to work hard in school than spending your summers around a bunch of high school dropouts.

Neustache

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Re: Horrible xmas advice in the Independent.
« Reply #7 on: December 08, 2014, 07:35:11 AM »
We are in the carpet cleaning industry.  Yep.  We actually have a pretty decent crew right now, but it has not always been like that in the past...

Runge

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Re: Horrible xmas advice in the Independent.
« Reply #8 on: December 08, 2014, 07:48:00 AM »
What really bothers me is how far off the rails it goes...

Yes, he's right that it'll make the next pay cycle harder because it's longer. Somehow makes it harder to track your finances?

Quote
Failing to keep tabs on your current account balance could mean you exceed your agreed overdraft limit and face a big bank charges bill come the first few weeks of 2015.

This is true for ANY time of the year.

The he goes on to suggest setting up an agreed overdraft policy to give you some "breathing space".

But wait, it gets better! He suggests getting a personal loan to clear out your overdraft "once and for all." Oh the insanity. Let's use debt to cover our debt.

I guess it's better than being in overdraft...but how about we all simply set aside money during the year for christmas time so that you don't get hit all of a sudden with travel costs and whatever else people spend money on.

RangerOne

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Re: Horrible xmas advice in the Independent.
« Reply #9 on: December 08, 2014, 10:50:17 AM »
As a young kid with my first salary job I can remember getting a pay check 1 week early from the front desk because we didn't have direct deposit. The check came right before 4th of July and me and my young co-workers lived like kings for a day because it was like we had 2 times as much money as we did.

But in the end that was just an illusion. I started getting all my checks a week early and in the end there were still 2 weeks between every one of my checks...

Getting your pay bumped up a week is simply likely to cause overspending. It only feels helpful if you are living pay check to pay check. Getting paid early can feel good but it changes nothing.


going2ER

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Re: Horrible xmas advice in the Independent.
« Reply #10 on: December 10, 2014, 11:40:58 AM »
"If you keep on top of your spending and stay within your agreed limit, then the charges you incur will be minimal, and at least you won't give the banks a chance to spoil your Christmas and New Year celebrations."

Seriously? Your agreed limit should not include credit cards and lines of credit, if you can't afford to pay cash, you can't afford it. Then there will be no charges, imagine that, Christmas with no credit charges, none what so ever. Then "you won't give the banks a chance to spoil your Christmas and New Year celebrations."