I Can't Go a Month Between Paychecks!

Joe got a job working for XYZ Corporation. He was placed there through a local temp agency, which meant that he officially worked for the temp agency until XYZ Corp decided to bring him on as a permanent employee.

He liked the job and after three months was called into a VP’s office. He was told that they decided to keep him on in a permanent position. They were also going to raise his salary by $2 additional per hour. He just needed to meet with the HR Department to work out the details regarding payroll and his benefits.

“We’re in the middle of a pay cycle,” the Vice President explained, “so they’ll talk to you about when your next paycheck will arrive.” Joe looked surprised, “Well, I usually get paid every Friday, so that won’t change, will it?” “Yeah, it will,” the Vice President went on, “The company pays its employees monthly, so you’ll probably get a partial check at the end of this month, and then another on the 30th of every month after that.”

Joe couldn’t believe what he was hearing. The end of the month was three weeks away, and he was going to have to wait a month between paychecks! He knew the way he spent money and could foresee a lot of problems having to wait so long for the next check.

“Can’t some exception be made?” he asked, “I can’t go a month without a paycheck. I’d prefer to get paid weekly.” The VP explained that their company doesn’t offer that option. “It’s not a big deal,” he said, “you’ll just learn to budget the check out.”

Joe went home and thought about it. When he told me the story I couldn’t believe he was hesitating! A higher paying permanent job with benefits? “Just divide the check by four, and only spend a quarter of it each week!” I told him, trying to suggest a plan that wouldn’t overwhelm him.

Eventually he turned the job down. “This temp agency has been really good to me,” he told me later, “I’m sure they can place me with another company.”

People make money decisions every day that have nothing to do with making more money. Daily managing and budgeting is a task most of us have never been taught.