The majority of companies will pay employees either weekly, or bi-weekly. While some prefer to be paid every Friday, is there any reason why bi-weekly payments might be a better situation. Most employees eagerly await payday, and four seems better than two, but perhaps there is a method to the madness of paying employees just twice a month.
One advantage of being paid twice a month is that it encourages employees to save money and to plan ahead. If you know that you won’t have money for another two weeks, you are going to want to make sure that there is money in your account until the next payday so that you can still live and pay your bills on time.
Another advantage of being paid twice a month is that your paycheck is going to be bigger than if you got a check once every week. This might actually help you pay your bills off because your checks will be larger and you can pay off more of your bills at once as opposed to maybe paying off one bill one week, and then another bill the next week.
Getting paid twice a month might actually help you from spending money that you don’t have. If you were paid $500 dollars every two weeks, you won’t be able to spend the money until you get paid. However, if you were to get $250 dollars every week, you might be tempted to spend money that you were going to use on bills.
Perhaps you don’t have direct deposit, so you have to get your check cashed, or go to the bank to deposit the money so you can then send it off to the cable company and other places. If you only get paid twice a month, you limit yourself to two trips to the bank to have to deposit your money. This can make your life a little easier, especially if you didn’t cash your check every week anyway.
While it might seem inconvenient to get paid only twice a month, it can be a very easy way to help you save money. It decreases the amount of times you have to worry about going to the bank to cash your check if you don’t direct deposit, and it results in bigger checks which will make it seem like your job pays more than it does.