What is your Payday Routine…
It’s Thursday at 7:00 pm. I open my Tangerine app and see the familiar notification: my biweekly pay has been deposited. I smile as I glance at the balance—it's a comforting sight.
But fast forward to 8:00 pm, and the numbers have changed dramatically. There’s less than $400 left in my account. You wonder where all that money went.
Well, it’s not gone; it’s simply on a mission. Each dollar had a specific task to complete. First, a chunk was sent off to pay my rent, ensuring I have a roof over my head for another month. Another portion was dispatched to cover my credit card bill, tidying up any outstanding balances and keeping my mantra of never making the big banks money.
Some were assigned to my investment account, I’m currently on track to max out my FHSA account. The remaining in my account was carefully allocated to cover groceries, utilities, black tax, and a bit of fun—because even with responsibilities, it's important to live a balanced life.
Each dollar moved purposefully, fulfilling its role like a well-oiled machine. So, while my account might look sparse right now, every cent is exactly where it needs to be.
What is a Payday Routine?
A payday routine is a set of activities you do when you get paid. Having a great payday routine ensures your money is managed properly and gives you control over your finances. You assign every single penny its purpose.
Why you should have a Payday Routine
The No. 1 reason is having control over your finances. One of the major things people struggle with is feeling in control, and having a payday routine helps achieve this. You have a clear plan of how you would spend your money, it enables you to stay on track to achieve financial goals and feel accomplished.
How to Create a Payday Routine that WORKS!
Now how do you create a payday routine that works?
Be Intentional and Create a comfortable space
First, you can create a routine that works for you, so start by choosing the best time that works, and make an appointment with yourself. Do you enjoy a movie in the background or like listening to music when working on anything, set the same scenario for when you are working on your payday routine. The goal is to be comfortable!
Use a Budget as a Guide
Having a budget can not be overemphasized; a budget is a great guide to knowing where your money is supposed to go. I recommend a monthly budgeting session at the beginning of the month, where you write down all your expected expenses and how much you plan to spend on each category. Once you have this, it is easier to manage your payday routine because you know exactly where to send your money and all your expected expenses. Another tip is to budget for fun activities and things that bring you joy. You can check out my Budget Tracker which I currently use!
Automate everything Automatable
One of the tricks to sticking to your payday routine and budget is automating your bills and savings. This helps take the decision-making from you. One tip is to schedule these payments a few days after your payday. For instance, if you are mostly paid on the 15th and 30th of the month, your phone bill can come out on the 17th or 1st of every month.
Also, it’s very possible to speak to the bill providers that you want the bill coming out on a certain day, this also goes to your credit card payments and so much more. Do not forget to automate your savings and investments as well, most banks and accounts allow for this.
My Payday Routine
Here’s an idea of what I do during my payday routine to help guide you.
Compare the income deposited with my paystub, I do this regularly to ensure I’m being paid the right amount. Sometimes mistakes happen and if you were to owe your company, you would have to pay them back so you also need to look out for yourself.
Pay my Tithes, I’m a Christian and this is important to me.
Pay my credit card bills cause Scotiabank and American Express are not making money off me.
Send my rent payment to my housemate if it’s the last paycheck before the end of the month.
Pay myself by sending my planned savings to my Neo HISA or EQ bank HISA, and likewise my planned investment amount to Wealthsimple or Questrade.
Send some money to my Nigerian bank account for black tax if it’s the last paycheck before the end of the month.
Leave the balance in my account for my phone bill, hydro bill, groceries and fun spending.
Let me know if you have any questions!
