After you’ve worked hard and put in the hours, your paycheck is the reward you get for a job well done. The problem is that payday typically rolls around just twice per month, leaving many workers scrambling if they encounter a pop-up expense in the meantime.
The workforce is evolving, and more companies are adopting pay systems that give employees more flexibility.
Enter On-Demand Pay. It’s a surprisingly simple tool that’s designed to empower workers while supporting their financial wellness.
Here’s how On-Demand Pay works — and, most importantly, how to get the most out of it.
What is On-Demand Pay?
On-Demand Pay lets you choose when you get your money.
With each day you work, your earnings build up in your On-Demand Pay app. You can then transfer funds to your debit card, bank account, or payroll card whenever you like, usually for a nominal fee. If you have leftover funds come payday, you’ll receive this money in your regular paycheck.
Benefits of using On-Demand Pay
On-Demand Pay has many built-in benefits. For one, it provides you with flexible access to your money so you can avoid costly interest or predatory loans.
This alone can help break the debt cycle and put you on firmer financial ground. Staying on top of your income can also prevent overspending so you can avoid hefty late fees and interest charges.
Another benefit is that On-Demand Pay can help you develop better saving habits. DailyPay offers additional savings features to help workers improve their financial wellness. For instance, you may choose to automatically transfer a portion of your earned pay directly into a savings account.
Tips for getting the most out of On-Demand Pay
Understanding the ins and outs of On-Demand Pay can help you get the most out of this employee benefit. Consider these helpful tips before getting started:
- Make a plan for every transfer. On-Demand Pay is meant to provide workers with a greater financial cushion. As such, think of it as an integral part of your budget. A working budget tracks both your expenses and your income. Whenever you make a transfer ahead of payday, you’re reducing your future paycheck. This certainly isn’t a bad thing if you’re using transfers to cover bills and other essential spending. Just be sure to deduct them on your budget so that it accurately reflects your incoming money.
- Up your financial wellness. Shoring up your financial health can help you stretch your paychecks even further. This begins with creating a workable budget and building up your emergency fund — two strategies that can dramatically reduce financial stress. The first curbs overspending; the second provides a pool of money you can use to navigate all kinds of financial emergencies. On-Demand Pay can provide financial peace of mind in the meantime.
At DailyPay, we’re here to help you get the most out of your money, on the daily. Learn more with an app tour or sign up today!
