Technically every day you are not paid is an interest rate free loan to your employer. That said, being paid once a month is fine for me since all my fixed expenses are also paid on a monthly basis.
The employer basically gets an interest-free loan for that extra week; whereas the employee might need to pay interest to a third party to make up for any shortfall on their end (e.g. credit cards, payday loans). Majority of people live paycheck-to-paycheck and can’t cover an unexpected $1000 expense.
The interest-free loan part I get but I don’t see how getting paid every week would help you deal with the unexpected $1000 expense. To me this just sounds more like being bad at dealing with personal finances than anything granted I’m in a privileged place since I don’t live paycheck-to-paycheck
It’s not going to help much with the unexpected $1000 expense, but it would help with the smaller expenses and general day-to-day life. If you’ve never had to utter the phrase “sorry, but I don’t get paid until next week” it’s probably hard for you to understand, but many of us had to miss out on some little things in life we needed or wanted because the money we had already earned wasn’t available to us when we needed it.
But you’re not getting any less money. If you can’t afford something when you’re getting paid once a month then you can’t afford it if you’re getting paid every day either.
This still sounds more like an issue with managing personal finances than anything.
You’re still getting the exact same amount of money so how’s that a scam?
Technically every day you are not paid is an interest rate free loan to your employer. That said, being paid once a month is fine for me since all my fixed expenses are also paid on a monthly basis.
The employer basically gets an interest-free loan for that extra week; whereas the employee might need to pay interest to a third party to make up for any shortfall on their end (e.g. credit cards, payday loans). Majority of people live paycheck-to-paycheck and can’t cover an unexpected $1000 expense.
The interest-free loan part I get but I don’t see how getting paid every week would help you deal with the unexpected $1000 expense. To me this just sounds more like being bad at dealing with personal finances than anything granted I’m in a privileged place since I don’t live paycheck-to-paycheck
It’s not going to help much with the unexpected $1000 expense, but it would help with the smaller expenses and general day-to-day life. If you’ve never had to utter the phrase “sorry, but I don’t get paid until next week” it’s probably hard for you to understand, but many of us had to miss out on some little things in life we needed or wanted because the money we had already earned wasn’t available to us when we needed it.
But you’re not getting any less money. If you can’t afford something when you’re getting paid once a month then you can’t afford it if you’re getting paid every day either.
This still sounds more like an issue with managing personal finances than anything.