IS IT PAYDAY?

Most people know when it is payday. Usually those who do are ones that are living from paycheck to paycheck. Living paycheck to paycheck is for those who are just beginning to work. Young workers have not built up reserves. They spend most of what they make on current needs. It takes time to build up reserves. Getting established takes time. Even young workers can begin to save some of what they earn if they learn the discipline of savings.

By setting aside something out of each paycheck, eventually a worker can build up enough reserves so that they are not living paycheck to paycheck. The first savings account to be established is an emergency fund. For any of us the future is uncertain. We do not know when an unplanned expenditure will come up. This is why it is wise to plan for the future by having at least an emergency fund in place.

What is sad to see is that older workers have never learned the discipline of savings. Many older workers are still living paycheck to paycheck. They are bad examples to younger workers. These older workers look forward to payday and ask others "Do you know what day it is?" You will hear them say that they are glad it is payday. They work, not to achieve any worthwhile goals, but for payday. They also have low job skills. They see money as the sole reason for having a job. They do not understand the principle of service as the way to increasing their earnings. Those living from payday to payday can see a paycheck. What they cannot see is the reason for a paycheck.

I had something happen to me recently that would have devastated someone living paycheck to paycheck. I own my own business. I am an independent operator of a bread vending route. I get paid 20% of net sales. I am a trained accountant, so I have an Excel spreadsheet where I track my weekly earnings. I know approximately how much my paycheck should be each week. My paycheck is directly deposited every Thursday. This past Thursday, I called my Credit Union to find out about my paycheck. There was no deposit. So I called on Friday and still no deposit. I knew at this point that something was wrong.

I printed out a settlement statement for the week ending 7/11/09. This one page summary sheet said I owed the company $3,651! No wonder I did not get a paycheck. I printed out the entire settlement sheet (about 15 pages) and found the error. I was being charged $4,800 for 2012 Cinnamon Raisin Bagels. I do not even order 2012 Cinnamon Raisin Bagels in a year! Someone had made a mistake. I called the settlement office and the matter is resolved and I will get my paycheck.

The lady at the settlement office told me that I was handling the matter better than she would. What she did not realize is that I was going to get my money and also that I do not live paycheck to paycheck. Though it would have been nice to have my paycheck arrive on time, waiting a week was no big deal. For those who live paycheck to paycheck, an incident like this could devastate them financially for a long time. If you have not established an emergency fund, begin now.