Pay Frequency – Does it impact your ability to save?

I wonder if a person's pay frequency contributes to their ability to save money.

For example, is it easier for a person to save money if they are paid weekly or is it easier if they are paid monthly?  What about bi-weekly?  What about twice/month?  What about daily?

My hypothesis is that those paid MONTHLY have a better chance of saving money.  This is not backed up scientifically, but here are my reasons to support my guess.

  • Most bills are monthly – mortgage, utilities, car payments, student loan payments, insurance payments, etc.
  • When a person is paid monthly, they automatically know that there will be no more money for 30 days.  This fact forces the average person to go into "saver-mode".  They do not want to be eating bread crumbs for the last week of the month!
  • The majority of investment plans suggest a monthly contribution – $25/month minimum; $100/month minimum; etc.
  • Development of a spending plan (budget) is easier when paid monthly.  There is no need to develop a budget for multiple paychecks during a month that are attempting to pay individual monthly bills.

I would LOVE to conduct research on this!


  1. matt carbone on May 15, 2010 at 1:47 pm

    I definitely agree….even though my wife and i get pid on the 1st and the 15th, we are going to pay ourselves monthly!

  2. matt carbone on May 15, 2010 at 9:16 pm

    meant to say “paid”….Joe, this is what you did when you received paychecks?

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