On-Demand Pay: 10 Ways It Helps With Financial Wellness

Tapcheck Team   February 24, 2023

Build Financial Wellness With On-Demand Pay

On-demand pay is an innovative program that gives employees access to their earned wages before payday. Due to its growing popularity, many employers are starting to offer it as part of their employee benefits plans. And the results are powerful — for employees and employers alike! 

While accessing the money you’ve earned without waiting for the traditional two-week pay period is the most noticeable perk of on-demand pay, the benefits go far beyond getting quick cash in your pocket for an unforeseen expense. Read on to figure out how on-demand pay can improve lives and create lasting financial wellness. 

10 Ways On-Demand Pay Helps With Financial Wellness

It’s great to get the money you’ve earned whenever you want it, but the true power of earned wage access comes from what having that money allows you to do. 

  1. Cover Unexpected Costs
    Whether it’s car trouble, a medical bill, or property damage from a pesky storm, there are many reasons why you might incur an unexpected cost. With on-demand pay, you can pay for these costs with money you have already earned. This simple change reduces the stress of figuring out how you’ll pay for unplanned expenses. This brings us to the next benefit of on-demand pay.
  2. Lower Financial Stress
    According to a recent study, 55% of workers spend three or more work hours per week dealing with their financial challenges. If this sounds all too familiar, on-demand pay can help you reclaim time during your day to focus on things that you want to focus on and less time worrying about how you’re going to pay your bills. 
  3. No More Predatory Payday Loans
    We’ll say it again for the people in the back — No. More. Predatory. Loans.

    That’s right; you can kiss those predatory payday loans goodbye! These lenders know you’re in a tight spot for cash and want to take advantage of that, so they charge outrageous interest fees to keep you in debt. It’s their business model!  On-demand pay lets you use your own money to pay bills and expenses without paying ridiculous interest rates. Sounds like a win to us!

  4. No More Credit Card Fees
    If you’ve ever needed to cover a cost and didn’t have the necessary cash on hand, you may have used a credit card to get by in the meantime. However, as we all know, when credit cards aren’t paid off, interest builds, and you can wind up owing significantly more than the original amount you charged. With on-demand pay, you don’t have to rely on credit cards when unplanned costs come up!
  5. Build Your Savings
    Building your savings can be nearly impossible when you’re stuck in a cycle of debt. This creates uncertainty for the future and leaves you wondering how you’ll provide for your loved ones. By helping you avoid interest payments and lender fees, on-demand pay makes it easier to save money for your future.
  6. Create Generational Wealth
    With escaping the cycle of bad financial decisions, the impact on you and your loved ones is exponential. If you have children, paying off debt and saving money with on-demand pay can help you invest in their future, making it possible for you and your family to see brighter financial days.
  7. Better Budget Control
    No budget is perfect, especially when there are different expenses to take care of each month. For example, maybe you buy contacts every few months instead of every month, so it’s easy to forget to budget for a new set when the time comes to reorder. Having immediate access to your money can help you manage your money more effectively.
  8. Better Financial Literacy
    Every purchase you make in between paychecks adds up – sometimes more quickly than you think. By spending cash in real time for purchases, you can have a more tangible view of the money you have on hand, leading to better decisions and establishing healthy spending habits.
  9. Avoid the Cycle of Debt
    One idea we’ve touched on several times is avoiding a cycle of debt through on-demand pay, so obviously, we think this one is pretty important. The more you can avoid taking out loans and using credit cards, the better. You can build up your savings and create a better foundation of financial wellness for yourself and your loved ones.
  10. Stability and Peace of Mind
    Arguably the least tangible benefit, but perhaps the most valuable – financial stability and peace of mind. These are essential for your inner well-being and mental health, which means they can impact every other area of your life. With an easy-to-use on-demand pay program like Tapcheck, financial peace of mind has never been easier to find.

The benefits of on-demand pay go far beyond getting some quick cash for the weekend — although that’s pretty nice! It can help get you out of debt, provide financial stability for you and your family, and give you the mental freedom to quit worrying about finances. With all that in mind, it’s easy to see why people love on-demand pay so much!

Tapcheck Team

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