In the business world, there is a saying that “the early bird gets the worm.” The phrase reminds you to be first to improve your chances of success.
Receiving your paycheck a few days early could make the difference between on-time bill payments and overdraft fees. Here are some tips to help you get your money faster: 1. Use a paycheck advance app.
Sign up for direct deposit.
Direct deposit sends your paycheck electronically to your bank before payday, so it’s available on the scheduled payment date. It’s typically the fastest way to get paid early since it bypasses the need for a paper check to be mailed, which can add extra days of waiting time before your funds are available.
The electronic aspect of a direct deposit can also help you avoid the possibility that a paper check could get lost in the mail or stolen before it arrives at your home. It’s a powerful tool for anyone who needs to get their money as quickly and securely as possible, which is why many employers and other payers offer this option.
Signing up for a direct deposit is typically easy, and it can come with perks that make your finances easier to manage. For example, some banks and challenger banks offer early access to a direct deposit by posting the funds a day or two before your payday so you can withdraw them as soon as you need to.
You can even set up your direct deposit to automatically transfer a certain percentage of each paycheck into savings, which helps you build up your emergency fund or other goals without thinking about it. Just ask your employer about setting this up during the sign-up process, and most will be able to provide you with a form to fill out with all the details needed.
Set up a paper check.
Many people rely on paper checks to receive payments, particularly when they work at companies that don’t offer direct deposit. However, signing up for direct deposit is one of the most efficient ways to speed up your check-clearing timeline.
With direct deposit, funds are transferred to your account automatically and immediately. This means you can receive money a day or two before your payday, allowing you to pay bills online and avoid late fees.
Additionally, direct deposit eliminates the risk of misplacing or losing a paper check. Depending on your employer’s policies, you can split your paycheck between checking and savings accounts.
To ensure that funds are available quickly after a check is deposited, banks typically only allow you to cash the bill at the bank where the original review was written. This gives the most peace of mind that you won’t lose money.
If you’re a regular check receiver, consider switching to digital payments, which can be processed faster than paper checks. Additionally, processing a review can be quite costly for businesses, so switching to new payment options could save you money in the long run. The best part is that the vast majority of payment processing costs are eliminated with digital payments, which can help you improve your cash flow.
Use a paycheck advance app.
For some people, payday is a mini financial celebration once or twice a month. For others, living paycheck to paycheck is a way of life. Either way, the gap between paydays can stretch forever. Thankfully, cash advance apps solve the problem by letting you access your wages early for a fee.
These apps are called cash advance or paycheck advance apps, allowing you to borrow money from yourself before your paycheck. They are not to be confused with payday lenders, which charge high-interest rates on short-term loans. They also differ from debt counseling services, which typically charge a monthly fee to help you pay off various debts through a budgeting strategy.
Many of these paycheck advance apps offer a variety of features that can make them useful, including savings tools to help you build an emergency fund and automated bill pay. However, borrowing money from these apps every week may signal a bigger problem, and you should consider seeking financial counseling or setting up a budget.
Chime offers typical banking services through a mobile app (available on iOS or Android) that allows you to access your money up to two days earlier than traditional banks. You can qualify for this feature by opening a Chime checking account and connecting it with your employer’s direct deposit service.
Consolidate debt
Multiple debts can be challenging, especially with different payment dates and interest rates. Debt consolidation can help you simplify what you owe and pay off your debt faster by combining everything into one monthly payment. It can also reduce your debt-to-income ratio, boost your credit score and save you money in the long run.
However, before you consider debt consolidation, you must ensure it’s right for you. You must find a personal loan with a competitive interest rate to avoid being charged more in fees and higher interest charges than you currently pay. Plus, stick with your repayment plan to avoid making things worse.
Additionally, if you cannot qualify for a debt consolidation loan, try a balance transfer credit card instead. These cards have a low introductory period and can give you more time to pay off the debt. While this isn’t a quick fix, it can help you improve your credit health and pay off pesky revolving debt balances faster. But remember, a credit card can still be risky if you can repay the balance by the deadline.
