Getting into the habit of saving is kind of like eating healthier—we know it’s good for us, but actually doing it can feel tough. A solid emergency fund plays a key role in financial wellness. Stockpiling three to six months’ worth of expenses is the ultimate goal. That way you’ll be well prepared for your next financial surprise, whether it’s a stretch of unemployment or an unexpected bill. Still, more than half of Americans don’t have enough in their emergency fund to see them through three months of expenses, according to a 2021 Bankrate survey.
If you’re feeling defeated, take a deep breath and start where you are. What matters most is routinely saving some portion of your income. DailyPay is committed to helping employees meet their savings goals—and making it as easy as possible. That’s why we offer three simple ways to save your earned pay. Each one moves money out of your DailyPay balance and into your Savings Vault. Think of this as a holding pen until your employer processes payroll. At that point, this pool of cash will drop directly into your savings account at no additional charge.
It’s a hands-off way to build your emergency fund with the tap of a few buttons, right from your phone. Below is a closer look at the three ways to save with DailyPay. The first two options can make great jumping-off points if you’re early in your savings journey. Once saving becomes habitual, you can dial things up with Auto Save. Here’s how it works.
If you aren’t used to saving, this option is an ideal entry point. It allows you to set aside money in real time, whenever you want. Simply determine how much of your earned pay balance you want to save, then set up a direct transfer into your savings account in a couple of clicks. That money will hit your emergency fund when payroll goes through. (Pretty simple, right?) Direct Save gives you some flexibility and allows you to modify your savings target as you see fit.
DailyPay is a handy resource because it unlocks access to your earned pay whenever you need it. The more days you work, the more you’ll accumulate. Instead of waiting until payday to cover your bills, you can move money out as you go. You’ll then receive any leftover funds with your regular paycheck. When you transfer money ahead of payday, DailyPay allows you to round up your transfer to the nearest $1 to $10. This lets you top off your savings account every time you initiate a transfer.
This is the ultimate savings option because it’s truly “out of sight, out of mind.” You select a fixed amount to set aside each pay period, then Auto Save separates that from your spendable balance and deposits it into your savings account on your payroll schedule. This type of automatic savings program can go a long way in building a meaningful emergency fund. Instead of saving a little here and a little there, it takes the legwork out of the equation and automates a fixed amount for you.
It’s also pretty hassle-free. You never have to contact your HR department to adjust your savings target. You simply do it on demand within the app.. Let’s say things are going well and you’re able to put aside $50 or $100 every paycheck—awesome! But if things get a little tight (like around the holidays), you can ratchet that down to $20 a paycheck. In other words, you can modify your savings program whenever you want and start building that nest egg.