Some say money is the root of all evil. Certainly health and happiness lead to a more satisfying life. But without money you will never live a financially independent life. And you will never have money unless you focus some of your attention on it. So evil aside...here we go!
Unless you stand to inherit enough greenbacks to live a financially independent life, you probably will need to work for a living and save. As in money... That means getting a job. Getting a job means that you will be earning a paycheck. Yeah for paychecks! And you will get some kind of "receipt" for your earnings. We used to refer to that as a pay stub...not sure what they call them these days!
Your paycheck can come in the form of a physical check that you can see, smell and touch. You then need to take this check and deposit it into your checking or savings account. What, you don't have a checking or saving account? Ooops, I see a future topic on the horizon...
The other alternative to getting a physical check is to have your pay deposited directly into your bank account. So you never ever get to see, smell or touch a check but you do get to fondle a pay stub. I remember years ago that some worker bees couldn't quite handle this concept. Today because the younger generation is used to doing everything electronically, this shouldn't worry them too much. Easy come, easy go...right?
The advantages to having your pay directly deposited into your bank are many. This process is usually just called "direct deposit" and here are just a few reasons why it is a good thing to do.
1) Your pay shows up in your bank account almost like magic. No having to take it to the bank or mobile depositing it. Wait, you've never used mobile depositing of checks? Now THAT is a good use of technology! Topic for another blog post...
2) You don't have to be at work to get paid. If you happen to be on vacation, or out of the office for anything like a sick day, your money still shows up. And after all, who doesn't deserve a little rest and relaxation after two weeks of work because...this working stuff is hard! Don't worry you only have another fifty years or so to go. Or in other terms, 600 months, 18,000 days, 144,000 hours or 8,640,000 minutes until retirement! Proof that you better like what you do or it is going to be a loooooong time until retirement... And if you start saving now, you can most likely shorten those times!
3) You don't handle a paper check, so there is no way for you to lose it. Or have your parents throw it out when you leave it on the counter in the kitchen for two weeks. Right, son?
4) Sometimes your bank requires "direct deposit" into an account so that you don't have to pay them money, called fees, for the privledge of letting them use YOUR money. Yep, you got it, another future blog post.
5) I'm sure direct deposit saves your employer a ton of money. Well, maybe not a ton but it has to save them SOMETHING because there is less paper, less processing and less absenteeism when, after getting your hands on that beautiful pay check, you rush out the door to go deposit it. Believe me, it happens! And with all that extra dough, management just has to give you a raise, right? Because you SO deserve one after working for just two weeks. Sigh......
6) Sometimes employers allow you to split your paycheck and send it to multiple accounts. This is good because you can put some money in an account that your debit card can't access. Because isn't it AMAZING that you can use that debit card anywhere for anything in any little amount? Sigh... Diverting some of your money to another account could help you save it for a short term goal, like a vacation or a car, or a long term goal, like retirement and financial independence. In particular, I like that second one...
7) For you eco-friendly people out there, PayChex (a third party payroll company and a really good stock pick back in the day) reports that direct deposit is"environmentally friendly because it reduces a company's carbon footprint. The green impact can be further expanded by offering online pay statements that can be available 24/7". Yeah, what they said...
8) Lost or stolen paper checks are a common source of identity theft but with direct deposit, your personal information will be seen by less people. Like the ones who spend all their time figuring out how to get something for nothing. If this sounds like you, I say go get a job and start reading this blog. Wait...you are already reading this blog. So just go get a job!
If all of these reasons don't encourage you to ask your employer about direct deposit for the handling your hard earned cash, I don't know what will.
So...direct deposit...JUST DO IT!
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