3 Money Moves To Make If Your Pay Schedule Forces You To Miss Out

According to an emailed survey from Chime, a leading banking platform, the impact of the paycheck cycle on social life is significant.

Millions of Americans find themselves missing out on notable moments due to the timing of their payday. The survey revealed that 43% of working Americans reported being unable to attend an event because of their payday.

Some of the notable stats from the survey include:

• 59% of employed Gen Z members had to miss out on a social or life event because of their paycheck delay, and 54% of millennials admitted the same.
• 54% of respondents who missed an event in the past six months chose to use their credit cards to prevent this from happening again.
• 45% missed gatherings and major holidays with family or friends because they were waiting to get paid.

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The new term that describes this situation is FTMO (fear of missing out), and pay schedules are causing many to skip out on social events that they were excited about attending.

GOBankingRates looked at budgeting steps young people can take to mitigate this effect so that they can enjoy going out with friends without hurting their finances .

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1. Prioritize Social Events in Your Budget

“To avoid missing out on social events because of paycheck timing, one of the best things you can do is create a budget that prioritizes socializing,” said Scott Neu, a financial advisor at Reinke Gray Wealth Management . “Start by looking at your monthly income and expenses and decide on a fixed amount you’re comfortable setting aside for fun.”

This way, you’ll have a clear picture of what you can afford to spend on nights out or family events without stressing about overspending. You want to be proactive and take some time in advance to prepare accordingly so that you know what to expect when it comes to your expenses.

“When handling money in conjunction with the excitement of social events, people should begin by making a monthly budget that identifies expenses, saving, and entertainment,” shared Faris Khatib, a financial expert and CEO of Ideal Tax . “One good strategy employed is the ’50/30/20′ principle, which identifies 50% of a person’s salary as needs, 30% as wants and 20% as savings.”

With this strategy, you can put some money aside every month for social activities. Either way, the goal is to ensure that your monthly budget allows you to leave some space for your social life so that you don’t have to tap into your credit card to treat yourself.

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2. Automate Your Savings

Neu noted that you can simplify your budgeting for social events by automating your savings — specifically transferring a set amount into a separate account dedicated to social spending every paycheck.

“That way, by the time your next outing comes around, you’ll already have money set aside for it, even if it’s not payday yet,” he added.

The set-it-and-forget-it approach for personal finance works because you don’t have to take any additional steps on your end. You can contact your payroll department or your bank to ensure that a set amount comes off every paycheck into a separate account.

You can label this account so that you know exactly what the funds are for. When you have the money ready in an individual account, you won’t have to stress about paying for your brother’s wedding or buying a flight home for Thanksgiving.

However, it’s worth pointing out that it may take some time to build this account up. This is where the balance of short-term satisfaction and long-term financial planning becomes a struggle.

You’ll want to spend a few months building up your fun spending account to have the resources to enjoy yourself in the future.

3. Find Affordable Social Activities

You could also explore ways to stretch your budget, like using discount apps or happy hour deals, and suggest those to your friends.

Khatib shared that hosting potluck or game nights at home is a fun way to stay social without spending too much money. Some specific apps and forums help you find free local activities to meet up with your friends where you don’t have to spend much money.

“Plan lower-cost or free activities during the period when money is tight and save your bigger nights out for after payday,” Neu added.

If you know that you may have a birthday or special event coming up between paydays, you can use this as an opportunity to get creative with how you spend time with your social circle.

The key is to stay on top of things and keep track of where your money is going, so you don’t feel like you have to sacrifice fun to stay financially responsible.

This article originally appeared on GOBankingRates.com : 3 Money Moves To Make If Your Pay Schedule Forces You To Miss Out