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5 tips to avoid going broke before payday
Aussies are feeling the pinch in the lead-up to payday, with a new report revealing many of us are forced to change our spending behaviours in anticipation of the next pay cycle.

5 tips to avoid going broke before payday
Aussies are feeling the pinch in the lead-up to payday, with a new report revealing many of us are forced to change our spending behaviours in anticipation of the next pay cycle.

Xero’s Payphoria Study surveyed 1,000 nationally representative respondents and found that as a result of these struggles, the rush felt on payday, or what Xero has coined as “payphoria”, is very much real.
It found that one in three workers has less than $100 in their bank account in the lead-up to payday.
Consequently to feeling the pinch, in the final week prior to payday, Australians are cutting out cherished items such as a morning flat white or eating out, and even reported having to delay the payment of their household bills until the money lands.
Xero said a significant portion (63 per cent) of Aussies experience financial difficulties before payday, relying on short-term fixes to support them.
To get by, one in five Australians indicated that they look towards Afterpay, payday loans, credit cards or overdrafts to get by, while 12 per cent indicated they even resort to asking friends and family for assistance.
Acknowledging the financial pain, Xero has provided five tips to manage the pre-payday pinch, courtesy of personal finance expert Melissa Browne:
- Automate to limit your everyday spending
Send parts of your pay immediately to different accounts (at the minimum a bills account and a savings account) then only spend what’s left. If you start to run out of cash, then it’s beans and rice or inviting yourself to the parents’ house for free meals.
- Hide your money
Use a different bank for your savings so you aren’t tempted to dip into those monies as payday nears – and definitely don’t cheat with credit or “buy now, pay later” sites! Only spend from your everyday spending account.
- Swap rather than stop
Yes, we do want to enjoy life as it happens, but consider swapping your behaviours for a cheaper option. Instead of an Uber, use public transport. Instead of Friday night dinner and drinks, do Sunday brunch. Instead of buying your lunch every day, buy it three times a week. Instead of a personal trainer, go to group classes.
- Fall in love with free
Yes, you might want to treat yourself on payday simply for surviving another pay cycle at work without yelling at Jane for not washing her coffee cup. Again. But instead, grab a friend and find a dopamine hit another way. Maybe that’s picnicking in the park at lunch, doing a class together, going for a walk or a run, or even grabbing a coffee and heading out to a free exhibition.
- Find more cash
Rather than feeling like you’re a slave to your wage, challenge yourself to earn money for spending that’s not taken from your regular salary. This could be made possible through a side hustle, tutoring, dog walking, Uber driving, doing surveys online, consulting, selling products at the local markets – the opportunities are endless!
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