It’s February 15th. John prefers to arrive early to work at 7:00 am. At 8:30 am the office starts bustling as his colleagues saunter in. He notices who he has been sub consciously waiting for and smiles at her. At 9:00 am John takes a walk down the corridor to the Human Resource Office. Betty smiles as he walks in and without speaking she hands him the usual form – the same one that he comes to sign in at approximately this time of the month. He fills it in and walks out. Just another day in the life of John.Just the usual mid month routine of applying for a Salary Advance. Kes 30,000 is in his account two days later. On March 17th, John repeats the exact same routine. Six months later and six salary advance applications later, an internal memo is circulated to all from the Human Resource Director. In three months time, there will no longer be Salary Advances to staff save for real emergencies that can be proved. The reason given is that this has become an administrative nightmare. John is numb. This is the last thing he expected. The salary advance had become more than just that for him, it was a way of life, it was an expectation, and it was the way things should be.
A lot of us do live on this cycle. We convince ourselves that we will only do it once. Then the second month comes and we tell ourselves “one more time” and before we know, it is a habit that can’t be broken. It’s a drug we are addicted to and once taken away from us, withdrawal symptoms will show up. We forget that the only reason we have access to these advances, is that we work for people who are accommodating. However we need to remember it is not the obligation of our employers to advance us money before our salaries are due. In essence they are lending us money interest free (paying us in advance before we have done the work that is deserving of that payment). The terms of your contract most likely do not obligate your employer to do this. Most companies are realizing it is costing them heavily in terms of administrative time to dish out these Salary Advances as well as financially in term of the opportunity cost of those funds. What would you do if you got the same memo as John and if it was effected immediately? Unless lending money to staff interest free is part of your employer’s business strategy, it makes no sense for them to continue doing so and they can stop it at the drop of a hat. There are no labour laws here that will protect you. If you panicked even just a bit when you read this – that is withdrawal symptom number 1.
It is time to rehabilitate ourselves off the Drug called the Salary Advance. The reason we get stuck in this cycle is simple – “Spending more than you Earn”. Part of this spending in many cases could be a result of debt obligations which still means you overextended yourself in debt. Just because a bank is willing to lend you money does not mean you can afford it. It also means you are most likely not investing or saving, and you continue to jeopardize your future even as you go to work every day. You are in essence working to pay other people off i.e. your creditors, Nakumatt, landlord, bar etc. The solution is stop spending more than you earn. It would of course be ideal if today you can go cold turkey. Drop your spending to the bone, suffer through a month of deep austerity and break free. However from my experience in consulting with clients on this area, I have come to realise that most people need to be weaned off the cycle. Firstly set yourself a target for example 3 months. The shorter the period the better. Remember you could get the memo tomorrow. Reduce your spending to some extent this month so that you need less of an advance next month. Make it painful as well. Don’t just get rid of an expense you don’t care for, go for the jugular, for something that hurts you enough, never to want to be in this situation again. It might be your Cable TV or the comfort of shopping in supermarkets or selling off one car to reduce loan repayments. The second month spend even less; ask for even less of an advance. Repeat this until your set target date when you will be completely weaned off the cycle. You will be drug free.
It is at this period you have to confront certain beliefs about what is a Want and what is a Need in your life. It amazes me how many people in this situation still regard cable TV and an internet connection at home a Need! Albert Einstein said it perfectly – “You can’t solve a problem with the same mind that created it”.
Waceke Nduati-Omanga