How many times have you had to pay the high interest of a payday loan, all while thinking “if only today was payday?” When you have no control over when you get paid, the stress is daunting. Studies have shown that this can increase the amount of mental health days missed from work. It has also been found that employees who are stressed about bills are distracted at work and their productivity suffers as a result.
With on-demand pay, controlling when you get paid is possible. As an employee, you earn money by selling your time to your employer. This means that you are in the service industry. Other service industry payments are expected at time of service, and Lume’s on-demand pay function makes this a reality for nurses. On-demand pay can help you take control of your finances and build wealth by ending the cycle of living paycheck to paycheck.
The true cost of living paycheck to paycheck
- Possible late fees, due to having to wait for payment to pay a bill
- Inability to save for a rainy day, due to accumulating late fees
- Lower credit score, due to late or even slow pay
According to DailyPay, “85% of users say access to their earned wages makes them more able to budget and pay large monthly bills like rent, utilities, car payment, etc.” Think about all the money that can be saved if you could build a true budget and stick to it. This means finally saying goodbye to those late fees, which are limiting your saving options.
Back to business—just not as usual
As the country begins to recover from the pandemic, companies are hiring differently and seeking new things from the workforce. In turn, employees are being highly selective in accepting jobs. They are looking closely at their benefits, with a particular focus on benefits that can help advance their financial well-being.
According to Josh Bersin, the leading research and advisory company in corporate HR, “a study from ADP showed that 60% of employees would take a job if they had more flexibility to select pay frequency.” Houston Methodist, which is consistently ranked as “one of America’s best hospitals” by US News and World Report, has utilized pay on-demand to make them an Employer of Choice in their market.
Differences between On-Demand pay and historical methods of receiving money between paydays
Historically, employees have always had a way to receive money between paychecks. However, these methods are associated with a heavy cost. Let’s look at the real differences between the options for getting money between paychecks.
- A Check casher salary loan requires a post-dated check that will be drafted on payday for a fee.
- A payday loan is a short-term unsecured loan that has a high interest rate
- A cash advance is a loan that begins to accrue interest (usually at a high rate) the day you take it out.
- On-demand Pay/earned wage access offers the ability to access the wages an employee has earned, typically for the price of an ATM fee, but with Lume it’s free!
Gone are the days of paying high interest on a loan to pay a bill because it hits between a payday, or you have an unexpected need for money. With on-demand pay, there is no need to burden yourself with another bill. Get on the waitlist with Lume to access your pay when and how you want it.