Why RM30 Feels Cheap on Payday but Expensive by the End of the Month

Ever noticed how a RM30 meal feels completely reasonable right after payday, only to seem painfully expensive a few weeks later? It turns out there may be more behind that shift than simply running low on cash.

Research into the “payday consumption cycle” has found that household spending tends to increase around payday before declining as people move further through their pay cycle.

Earlier research has similarly found that people generally spend more after receiving their salaries, with food and overall expenditure potentially rising sharply around payday.

Why That RM30 Meal Feels Different Before and After Payday

One explanation is mental accounting, a concept describing how people mentally divide and evaluate their money rather than treating every ringgit as interchangeable. 

A 2026 study involving 5,589 participants across 21 countries found that mental accounting effects remained consistent across different countries.

The payday effect may also involve present bias, where people place greater value on immediate rewards. With a fresh salary in the bank, purchases can feel less financially significant, while the same spending may feel more consequential later in the month.

That does not mean payday treats are necessarily a bad thing. But separating money for bills, necessities and savings before deciding how much is available for discretionary spending could help prevent early-month spending from becoming a late-month headache.

After all, RM30 is still RM30 — it just may not feel that way on payday.