I’m a Banking Expert: 3 Biggest Money Mistakes People Make on Payday
Written by
Laura Bogart
Edited by
Kristen Mae
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Regardless of where it falls on the calendar, it’s the best day of the week. It’s a day that feels a little better, a little more hopeful, no matter what else is going on in the world. It’s payday, of course — the day when the fruits of your labor hit your bank account.
But are you doing all you can to help those fruits ripen to their full potential? Like many people, you might be making common money mistakes that will keep you from savoring the full benefits of your paycheck.
If anyone knows how to make the most of your money, it’s John Rosenfeld, president of Jenius Bank. He sat down with GOBankingRates to discuss the biggest mistakes people make on payday — so you can avoid them.
1. They Don’t Save
Rosenfeld acknowledges that it’s easy to get caught up in the tasks and responsibilities of daily life, with savings often falling by the wayside. Once you’ve used your paycheck to cover your bills, you may feel inclined to reward yourself with a treat or two.
However, skipping savings can leave you vulnerable in an emergency or unprepared to plan for the future. When it comes to savings, Rosenfeld is a fan of automation. “Prioritizing saving with recurring deposits may be an easy way to ensure you’re saving a consistent amount on a regular basis,” he told GOBankingRates. No muss, no fuss, no having to remember it.
2. They Spend More Than They Earn
It’s no secret that the cost of living has surged. Rosenfeld said that, with costs for even the most basic items rising, it’s hard for some consumers to stick to their budgets. “No matter how much you earn, it’s important to steer clear of lifestyle creep,” he noted.
Taking small steps to rein in spending, even on essentials, can make a difference. Consider shopping at discount grocers like Aldi or Lidl, or exploring your local farmers market. Your local “Buy Nothing” group can also be a great place to acquire items you need without having to spend money.
For inspiration on adopting a more frugal lifestyle, the concept of “underconsumption” has taken hold across social media platforms like Instagram and TikTok. You can find a wide range of creators sharing resourceful tips for saving money.
3. They Deposit Money Into Savings Accounts With Fees
You’ve heard of death by a thousand paper cuts — what about death by a thousand small fees? While not a literal demise, fees can steadily erode your hard-earned cash over time. Rosenfeld recommends seeking out savings accounts that don’t charge unnecessary fees.
“Explore savings options like a Jenius Savings account, which earns a higher-than-average APY and doesn’t charge fees,” he said.
Payday is the perfect moment to set yourself up for success — and avoiding these common mistakes is a great place to start. By automating your savings, steering clear of lifestyle creep, and choosing fee-free accounts, you can make sure your paycheck works as hard as you do.
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