Did you set financial goals for yourself or family for 2018? What are they? If saving money is one of your goals, you need to know about payroll deduction! The concept is very simple, but the results, when utilized correctly, add up quickly.
So, what is payroll deduction? A payroll deduction is an amount, specified by you, of your paycheck to set aside from the rest of your paycheck. For example: Let’s say you have a direct deposit of $1,000 every other week going into your checking account. You could set up a payroll deduction for $50 (or any amount you choose) to go to a separate account automatically, before you have access to it. Your deposit would then be $950 to checking and $50 to specified account for payroll deduction.
Here’s the secret that makes payroll deduction work so well – it’s automatic! The money is automatically put into your specified savings account, you never see it in your checking account. Because many people spend everything that they make, they thing they can’t save money. You’ll be showed at how easy saving is when you automate it.
For all those that don’t thing saving a little bit every pay period adds up, here’s the proof! Every little bit that you can save helps. It could be the difference between being able to pay that next surprise bill yourself or having to put it on a high interest credit card.
| Bi-Weekly Pay Periods (26/year) | One Year Savings Total | Semi-Monthly Pay Periods (24/year) | One Year Savings Total |
| $25 | $650 | $25 | $600 |
| $50 | $1,300 | $50 | $1,200 |
| $75 | $1,950 | $75 | $1,800 |
| $100 | $2,600 | $100 | $2,400 |
Think of all the ways a payroll deduction can help you save towards your goals. Contact one of our Member Service Representatives to sign up today!
