Do These 3 Things Before Your Salary Drops

Another salary week is here! 

Whether you’re a global remote work contractor or a regular 9-to-5er, this week comes with its little joys. Think about that feeling of relief when the alert of your salary hits your phone or email, the heave when you can finally start sorting out pending bills and making future financial plans. It feels like a breath of fresh air. 

Before your salary arrives, you can make these three small changes to ensure financial ease and avoid mid-month struggles. 

1. Review your budget & reset for the new month 📋

Many people go month-to-month without operating a functional budget. For some, it just doesn’t matter. If you’re a salary earner, having a clear, functional budget is the line between stretching your income and being broke by week 2. 

Before your salary for this month comes in, review how you spent the last one by asking yourself the following questions:

• Where did most of my money go?

• Did I overspend on food or subscriptions that I barely used?

• Are there expenses that I can avoid next month?

• Did I encounter emergencies that may repeat?

By answering these questions, you can better understand your spending habits, allocate your funds properly, and prepare for the next income by drawing up a clear spending budget. 

2. Are you ready to receive your salary? 🏦

Have you put everything in place to get paid? Check your bank account (if you’re using a US bank account to receive payment from an employer in the US, for example, check that your account is not restricted) and ensure that your employer has all the details needed to pay you promptly.

3. Set funds aside towards savings & investments 📈

Your salary is not just to survive today; it is also capital for building your future. If your salary is your main (and only) source of income, it is important to strategically save and invest towards a financially safe future. 

You can split your savings and investments into any of these three categories:

• Emergency fund: This is an account you set aside with, at least, a month’s worth of living expenses. You can build a substantial emergency fund over time, but if you don’t have one, now is a good time to start. This fund will come in handy when you have emergencies in the future. 

• Savings Goal: Whether you're saving towards a specific goal (new car, new apartment, house rent, new personal computer, etc.) or saving for a future goal that is not yet specified, you can put the funds in this bracket. 

🧠 Did you know that you can earn interest on your wallet balance on Cenoa? Well, now you do! If you don’t have interest enabled, do it now in the settings of your app.

• Investments: Investing in diversified assets over time can help you slowly but surely build wealth in the future. Ideally, start with investment classes with risk that is manageable for you. Whether you’re interested in stocks, crypto, or low-risk savings plans, always start small and build over time. 

⚠️ Please note that this is NOT investment advice. We encourage you to do proper research (and, where possible, consult with a professional) before investing in any of the asset classes mentioned above.

Final Thoughts

Are you already spending your salary in your head? Take this opportunity to make deliberate changes to your money management habits so that you can do more with your income, and ultimately increase your wealth over time. 

Start by planning with intention, cut out all excesses and plug all leaks, portion your funds wisely and allocate to things that matter, and make sure you’re prepared to get paid in full.

ℹ️ Receiving payment from the US using a Cenoa-powered US bank account is cheaper than other providers out there. You save 50% on fees and get paid in full.