The benefits of saving straight from your salary

Over 90% of Serve & Protect members said saving with repayments from their salary helped to improve their financial resilience.

Saving money is not always something that comes naturally to us, with many people living month to month, wage packet to wage packet, and just making it through to their next pay day. This behaviour, or habit for some makes things especially difficult when it comes to a point in life, where you really need money.

In time of financial crisis, saving money can often be the last thing on your mind, but if the uncertainty of 2020 has taught us anything, things can change very quickly. It is in these times of financial disruption, where an easy or instant access savings account become vital. So, how can saving from your salary help you develop a regular savings habit?

Why you should save straight from your salary?

How does payroll deduction work? An agreement is set up between your employer’s payroll team and the credit union, to make it as easy as possible for payments to be made into your savings account. When you sign up, you’d specify how much you want to save monthly, and this is automatically deducted from your net salary into your savings account.

Why is it easier to save this way? Almost three quarters of Serve & Protect members chose payroll deduction as their main reason for joining the credit union. Why? Well one of the main reasons is because it takes away the temptation to spend money on other things, as it is automatically transferred to your credit union savings account from your wages.

Additional benefits of saving straight from pay. Saving via payroll deduction means that when borrowing, your loan repayments also come from pay, removing the added stress of ensuring you meet deadlines. What is more, your account is dealt with confidentially, and your place of work have no information on whether your deductions are for savings or loans.

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