We have recently gone from receiving our remuneration via the form of salary to wages.
I thought I would list some of the pro's and con's for each.
Salary
- Large looking pay cheque.
- Almost all bills are due once a month.
- Makes worrying only a once a month thing.
These are some of the pro's for a salary however apart from all your bills needing to be paid once a month I do not see much of a benefit to this method of remuneration.
Yes everything is put together, your Tax and expenses however so is your spending. I have found that when we received a monthly pay we would use it all in the first two weeks and end up struggling or going into debt the rest of the month.
Wages (Every two weeks)
- Limited amount of money = less spending.
- Bill payments are split = more manageable.
- More control over your finances.
This form of remuneration I find very efficient, especially in situations where debt and financial control are not a strong point. You can split your bills and pay them earlier instead of worrying about large amounts later.
You spend less as you know there is not so much available and that you need to budget for the next two weeks. The only big con I have found is that you need to be on top of your finances weekly and this makes it sometimes easy to forget to make a payment.
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