How Bill Pay & Direct Deposit Can Help You Reach Financial Goals
How many of you set New Year’s resolutions? Many of us are already rethinking those goals before January is over. The good news is, you can set goals at any time of the year! It’s never too late to decide to make a change in your life.
Were goals for your health on your resolution list? I hope they were. Your financial health is very important part of your overall well-being.
There are two readily available services at more credit unions and banks that can be vital to your planning and budgeting. Those are Bill Pay and Direct Deposit.
Some say, these tools revolutionized the way we handle our finances especially in terms of convenience! Both these services make your life easier, save you time and save you money.
Let's start with direct deposit. How many of you are already using direct deposit?
In this digital age that we are in, gone are the days of paper checks and long queues at the credit union. Direct deposit has truly emerged as a game-changer, seamlessly transferring your hard-earned money directly into your bank account.
But why do we say game-changer? One major advantage of direct deposit is speed. No more waiting for the check to arrive in the mail and then go stand in line or wait in a drive thru at the credit union. Your funds are deposited electronically, which allows you to access your money faster and without the hassle.
Direct deposit also enhances the reliability and security of your finances. Forget the risks associated with lost or stolen checks. With electronic transfers, your money goes directly into your account which reduces the chances of mishaps and provides an added layer of security.
Another helpful advantage of direct deposit is it can help you save. Did you know that you can designate what accounts your money is deposited in to? You can set a certain amount per paycheck into multiple accounts. So, it doesn’t all have to go to a checking account. You can include multiple savings accounts to help you reach multiple goals.
Having the money deposited directly into an account you don’t often use can help you save. If you never actually see the money in your account, you are less likely to spend it.
Of course, if you need the money, you can transfer it to the account you need it in. Consider this when making deposit decisions though. Some accounts come with penalties for withdrawals. So money into those accounts will need to be able to sit for the time designated.
It is often surprising the number of people who use direct deposit but are unaware of this option. If you are not yet using direct deposit, consider it. If you are using it already, consider if you are using it to its fullest potential!
Contact your Human Resources person to get this set up. You will need the account numbers of the accounts you want to make deposits into. So you may want to have those handy.
Next lets switch to the other side of your finances and talk about bill pay. As we said, paper checks are becoming a thing of the past and so are traditional methods of paying bills through checks and snail mail. Enter bill pay services. It helped us transform the way we settle our financial obligations.
What does bill pay do exactly? It allows you to automate your payments. One of the biggest advantages is ensuring your bills are paid on time, every time. So, you can forget about late fees and missed due dates. With bill pay, your financial responsibilities are taken care of without lifting a finger.
Do you recall that on time payments makes up the largest portion of your credit score? Many of us are trying to raise our credit score and paying on time can help and actually fairly quickly.
So not only can you save money by avoiding those late fees, you could help your credit score.
Another advantage is in the organization and record-keeping capabilities of bill pay. No more sifting through stacks of paper bills. Digital records provide a clear and concise overview of your payment history, which makes it easier to track your finances and maintain a budget.
For most financial institutions, you can set up bill pay in your online banking. You will need to know the names of the vendors you want to pay to set it up. Once its done, however, the payments are handled for you.
When these 2 services “join forces”, you create a smooth flow of income into your account as well as the timely settlement of your financial obligations. So, as you can see, the synergy between these two tools creates a seamless and stress-free approach to your money management.
You gain increased control and flexibility over your finances.
Set up automatic transfers to savings, allocate funds for specific bills, and enjoy the freedom to focus on your financial goals rather than constantly juggling due dates.
Bonus tip!
Did you know using direct deposit may offer the option to get paid early? First Pioneers offers early payment with direct deposit. If your employer participates, your check may be deposited into your account up to two days early. Not all employers participate, but many do and that alone makes direct deposit worth signing up for. Keep in mind though. Some financial institutions charge a fee for this service. It still may be worth it, but just read your fine print in your agreements!
As we wrap up today's episode, it’s pretty clear that direct deposit and bill pay are valuable financial tools. The advantages of speed, convenience, reliability, security, automation, organization, and synergy really do make them indispensable in today's fast-paced world.