5 ways to avoid going broke before payday

Rushes of “payphoria” are sweeping over the nation, with new research from global small-business platform Xero revealing that many Aussies are feeling the pinch in the lead-up to the pleasure of payday.

The Xero Payphoria Study of 1,000 nationally representative respondents found that despite these struggles in the countdown to payday, payphoria is real. One in three workers has less than $100 in their bank account in the lead-up to payday. In an effort to conserve cash, the study uncovered that many Australians were cutting back on cherished rituals such as coffee and eating out (45 per cent), and even delay paying household bills (34 per cent) as they count down to payday.

A significant portion (63 per cent) of Aussies are having financial difficulties before payday, relying on short-term fixes to support them ahead of payday. To get by, one in five Australians looks towards Afterpay, payday loans, credit cards or overdrafts, while 12 per cent even ask their friends and family to dip into their pockets to help them get through.

Here are five ways how to manage payphoria from self-confessed shoe addict and personal finance expert Melissa Browne:

1. 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.

2. 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.

3. Swap rather than stop
Yes, we want to enjoy life today, 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.

4. 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, grabbing a coffee and going to a free exhibition or more.

5. Find more cash
Rather than feeling like you’re a slave to your wage, challenge yourself to earn your spending money away from your wage. This might be from a side hustle, tutoring, dog walking, Uber driving, doing surveys online, consulting, selling products at the local markets and so much more.