Dear Wealth-Seeking Family,
How will I receive my paycheck? That is a question that you should be asking. But first let me say…Hopefully you are gainfully employed! Whether you are or are not, will you be looking for a new job anytime soon?
Let me spill the tea on paychecks.
When you look and interview for jobs, you should be prepared to ask questions of the interviewer. Some questions that many people ask are: What would I do on a daily basis? What does the work week look like? Is there overtime? What are the prospects for promotion?
One question that you should ask is: “How will I get paid?” You may be thinking that as long as you know how much they say you will be paid is the only pay-related question. But, I found out from personal experience that I should have asked, “How will I be paid?”
In my Situation
In my situation, I was to be paid $30 an hour. The employer agreed verbally to that hourly rate. So, I began my work. I am a dedicated worker. It happened to be a tutoring job for a school. Well, I love teaching, it is a job that allows me to truly help others and at the same time, earn a living.
Now, $30 an hour for tutoring might sound like a lot of money, depending on where you live. But, I live in a state with one of the highest costs of living in the United States. In the state where I tutor, most tutors that I know make $60 – $90 an hour. Two months into the job, I had not been paid. The person who hired me started telling me that she thought $30 an hour was high. She was a nice enough person, and I did eventually get paid. But, it did cost me a lot of stress.
Thankfully, I wasn’t struggling financially.
But that doesn’t matter. I donate time and money often. But, I do so when I choose to do so. Since I didn’t go there as a volunteer, I felt that I should be paid. I had already agreed to cut my fees, since I was usually paid $50 an hour for the material that I was teaching. So, I was already offering it at a discount. Since my employer was looking for more of a discount, she took her time getting me paid, and I didn’t get paid until she told someone to write me a check and mail it to me.
So, when you are interviewing for a job, you need to ask specific questions about how you get paid. How will your money be delivered to you? Ask: How frequently will you be paid? What day do you get paid? What will be the method of delivering your money? When should you expect your first paycheck? When do paychecks come out, and how often (Every week? Every two weeks?)
You must find out…
How Will I Receive My Paycheck?
The common methods of delivery of pay for employment include: paycheck, payroll card, and direct deposit.
How will I receive my paycheck? What is a Payroll Check?
Paychecks are the most common methods of being paid. It involves getting a paper paycheck with a paystub.
The positive about paychecks is that you get the paystub and you can instantly see specifically what deductions have been taken. But, there are some negative to getting a paper paycheck.
The negative about a paper paycheck is that you need to get that money into the bank so that you can use it for saving, and investing. Therefore, it is time consuming. Also, you have to be careful that the paper paycheck does not get lost or destroyed. Sure, you may be able to get it replaced by your employer. But, you need your money in your bank account as soon as possible so that you can send your dollars out to earn more money for you. Yes, every day counts! Let me add that my paper checks were mailed to me, and it was not automated. Instead, I had to wait for an individual to write the check. (Ugh! I had to say, “Adios.”) So, I could not even count on having it on a specific day (or even a specific week.)
How will I receive my paycheck? What is a Payroll Card?
With a payroll card, the employer electronically loads the employee’s money onto a plastic card, like a debit card.
Payroll cards are time convenient. But, there are a lot of fees associated with them.
What is Direct Deposit?
Direct deposit involves an employer directly depositing an employee’s money directly into an employee’s bank account.
In some jobs, you will receive a paper pay stub. I have found that some employers don’t provide a paper pay stub, at least not automatically. But, direct deposit is the safest way to receive your money. It also saves you time, because you do not have to go to the bank, or even take the time to do a virtual deposit with your phone. You will also know exactly when your money will arrive in your account.
As you can see, how you get your money is important.
You want to make sure that you get your money in a timely, consistent, safe, and cost efficient manner. I suggest direct deposit. Once you get that money, you can start investing that money regularly so that you can achieve your wealth building goals and move toward becoming a “rich kid.”
Thank you for joining me! Don’t forget to subscribe, and join me for more Rich Mom, Poor Kid as I spill the tea of personal finances.
Want To Learn More about Financial Literacy? Check out:
Spilling the Tea on 5 Things I Don’t Spend Money On
My 3 Streams of Passive Income
Cheering You On!
Rich Mom
P.S. I’d love to hear how you receive your paycheck, or how you would prefer to receive your paycheck. You can let me know in the comments.
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Also, please note that I am not a financial advisor at the time that I am writing this. I write to share ideas and encouragement. Please do your own research and consult your own financial people for advice.
I encourage you to spend these early adult years: