this was inspired by a comment in another of my threads…
(caveat, yes, I know I will get the free marketeers up in arms that I am considering telling a private business what they can or can’t do. Just deal)
Most employees in the US are paid bi-weekly or semi-monthly, i.e. every ~14 days or so.
Do you think that shifting to a monthly pay period would be better for family budgeting? Obviously, we can come up with some mechanism to sync payable bills with the pay date (i.e. You’d get paid on the 1st, all bills payable on the 7th or something), and we could probably allow a bi-weekly payment for your first month of employment.
I can see this doing wonders for the budgeting process. If you only get paid once a month, and all of your bills are due shortly thereafter, it forces you to properly allocate your money.
With bi-weekly paychecks, I get the sense that your “middle” paycheck (i.e. the one that doesn’t happen right around the time your major bills are due) has a great propensity to be “improperly” spent since you probably don’t have current bills due or whatever
Could it potentially lead to shortfalls of money if people are truly that bad about budgeting?
If unforeseen expenses crop up, it’s a bit harder to accommodate them (but then again, is it any easier with a bi-weekly paycheck)?
To the people who can (and do) properly budget themselves on a 2-a-month pay system, it seems a bit unfair, I understand. But those who can properly budget their paychecks seem to be in the minority.
Or is this not going to do anything at all? discuss!