Paydays, Due Dates and the Money Calendar

The story: Enough money, wrong day

Marcus looks at a wall calendar with paydays and due dates marked, and a warning sign on the day before payday.

1. Narrator: Marcus works the front desk at a hotel and is paid every other Friday. The month’s pay easily covers the month’s bills.
2. Marcus: So why was my account short on the 18th?
3. Narrator: The phone bill and the electric bill are both due on the 18th. The next paycheck lands on the 19th.
4. Marcus: One day off, and I got hit with an overdraft fee.
5. Narrator: Many companies will move a due date if you ask. Marcus moves both bills to the 22nd, three days after payday.
6. Marcus: Same money, better timing. No more short days.

What you’ll learn

1. Timing gaps cause short days

   Most short days come from timing, not from earning too little. When several bills are due just before payday, the account can dip below zero even though the month’s pay covers everything. Putting paydays and due dates on one calendar shows the gaps.

2. Ask to move a due date

   Many lenders, utilities and phone companies will move a due date if you ask. Moving bills to a few days after payday gives the money time to land. Rent is often fixed, so people plan the other bills around it.

3. Autopay needs a buffer

   Autopay means never forgetting a bill, but it pulls the money even when your balance is low. Keeping a small buffer in checking, like a few days of spending, catches timing slips before they turn into fees.

4. Three-paycheck months and yearly bills

   Paid every two weeks? Most years, two months have three paydays. Many people send that extra check to savings or debt. Yearly bills, like a renewal, can be split into monthly amounts so they don’t land all at once.

   Example: a $240 yearly renewal is $20 a month set aside.

Key words

due date

the day a bill must be paid

autopay

a bill paid automatically from your account

buffer

a little extra money kept in checking for timing slips

cash-flow timing

when money comes in compared with when it goes out

Common questions

Will moving a due date hurt my credit?

No. Asking to change a due date is a normal request. What hurts credit is a payment that’s 30 or more days late.

Remember this

Enough for the month isn’t enough if it shows up late.

Try it: Map your money month

1. Mark your paydays on a calendar.
2. Add each bill on its due date.
3. Circle any day where bills land before pay, and ask to move one due date.

A paper or phone calendar with your real paydays and due dates.