Earned wage access
2 mins
What is Earned Wage Access (and How Can it Help Me)?
Author
Krista Fabbro
Published
Apr 8, 2022
We've all been there—bills stacking up, unexpected costs knocking at the door, and payday still a week or two away. Waiting for that paycheque to hit your account while life's expenses refuse to wait their turn is frustrating, to say the least.
Thankfully, earned wage access exists to bridge that gap by giving you access to your money right when you need it.
What is Earned Wage Access?
Traditionally, employees are paid according to a set schedule, usually biweekly or monthly. This means that no matter when you've put in the hours, you wait until a fixed date to see the fruits of your labour reflected in your bank account.
Now imagine clocking out and being able to immediately access a part of your salary for the hours you’ve worked, without having to wait for payday to roll around. Nice, right? It's kind of like having a mini payday whenever you need it.
Earned wage access puts you in control of your pay schedule. Instead of waiting until payday, this financial solution allows you to tap into a portion of your wages as soon as you've earned them.
How Does it Work?
The concept of earned wage access is pretty simple—as you work, you accumulate a balance that you can then take from before your actual payday. These services are usually provided via an app (like FastForward by MoneyUp!) where you log in, check your available balance, and request the amount you need. The funds are transferred to your account and then automatically recollected by the provider on your repayment date.
Benefits of Earned Wage Access
There are a lot of benefits associated with earned wage access that extend beyond the excitement of getting your money early.
Prompt Financial Relief
Whether it's a sudden car repair or an unexpected medical bill, life doesn't wait around for payday. Earned wage access can be a lifesaver in these situations and help reduce the stress that comes with living paycheque to paycheque.
Budgeting & Financial Planning
Having consistent, real-time access to your wages can simplify budgeting and financial planning. Rather than waiting for a lump sum every two weeks, individuals can better align their income with their expenses.
Low Cost
Earned wage access is often much more affordable than other financial options like payday loans. To access FastForward by MoneyUp, customers pay significantly less than they would if they were using credit cards, overdrafts, or alternative lenders. This approach makes financial planning way simpler and a lot more cost-effective.
Alternative to Payday Loans
One of the standout advantages of earned wage access is its position as a healthier alternative to payday loans. Traditional payday loans typically come with high interest rates and often lead individuals into a cycle of debt. With earned wage access, people can access their own money without resorting to costly payday loans.
Learn more about why you should choose earned wage access over payday loans.
Getting Started With Earned Wage Access
It's possible that your employer already offers earned wage access as part of their benefits package. If they do, they should be able to give you information on whether earned wage access is available and guide you through the process of setting it up.
There are also third-party services that offer earned wage access solutions. These platforms can be a great way to access your earned wages before payday, regardless of your employer's current offerings. Check out FastForward by MoneyUp to learn more.
Get Empowered With Earned Wage Access
As we’ve learned, earned wage access can offer a financial breath of fresh air by letting you dip into your paycheque a bit early. It can act as a quick fix for unexpected expenses and help you dodge late fees. Plus, it's a solid alternative to payday loans.
All in all, earned wage access can be a great way to take charge of your finances. Here’s to exploring new paths to financial wellness!
Want more info on what earned wage access could do for you? Contact us today!
