How Using Paytime Reduces Personal Cash Flow Volatility

Much like a business, managing our personal cash flow is essential to maintaining a healthy level of financial wellbeing. Income is used to pay our bills and other expenses, both of which often encounter volatility from month to month. This means that for many, there will be times when the money coming in falls short of their spending commitments!

In Australia, workers with the lowest incomes experienced the greatest share of the pressures associated with personal cash flow volatility. A University of Queensland study found that the lowest ten percent of earners experienced over thirty per cent of the income volatility and the lowest twenty per cent dealt with almost half of all lost wellbeing due to uncertainties surrounding income. A significant factor contributing to these statistics is the proportion of lower-paid, casual work. More than half of all casual workers in Australia receive varying paychecks from week to week, due to different shifts and work hours.

While volatile income is often easier to predict (due to hours worked being known before payday), unexpected expenses regularly arise and aren’t so easy to plan for. Medical costs, child or pet expenses and variable bills also play a role in our personal cash flow. The impact of this can be seen from this international study, where they found that higher income volatility households (compared to similar yet stable households):

  • Were far more likely to skip crucial medical care, such as mental health services and prescription medication
  • Were almost four times as likely to miss a mortgage or rental payment
  • Turned to dangerous payday loans at three times the rate
  • Lacked emergency savings and access to credit

How Personal Cash Flow Volatility Impacts Employees

It’s obvious to draw the link between personal cash flow volatility and financial stress. Financial wellbeing mostly boils down to how comfortably financial obligations are covered by income. When a person’s income falls below their expenses, due to temporary variances or otherwise, financial stress inevitably occurs as a result.

We also know that financial stress significantly affects employees in the workplace. In fact, according to the ANZ Financial Wellbeing Report, financially stressed workers spend almost 10% of their paid working hours thinking about financial issues. They also found that financial stress led to increased employee turnover and sick days being taken, costing employers up to $31 billion every year. Think about how a lack of financial wellbeing impacts your employees. If they’re distracted, tired, or stressed, they’re not giving their best. If they’re not giving their best, is your business reaping the full benefit they can with your employees?

Paytime Helps Employees Reduce Their Income Volatility

Paytime champions financial stability for all employees by allowing them to access their earned pay before payday. For a small platform fee, less than the cost of a cup of coffee, employees can request funds to be paid directly and instantly into their bank account through a convenient mobile app, even on the weekend and public holidays! There is no interest, and it’s not a loan since they’re accessing the money they’ve already earned!

This method of Earned Wage Access, also known as early wage access, allows employees to access their earned pay at any point of the pay cycle, without having to wait until their next payday. When an unexpected bill or expense arrives, instead of turning to credit or a payday loan, employees can alternatively access a portion of their earned wages to cover any shortfall.

Australian households pay an average of $468 in bank fees every year. Much of this is due to credit card charges, overdraft fees and late payment penalties. Banks and other financial institutions make a whole lot of money out of people who already struggle with personal cash flow variance. Paytime is focussed on stopping this from continuing!


Helping smooth your employees’ income is one factor that may positively contribute to their sense of financial wellness. If your company wants to empower your employees to improve their financial wellbeing by enabling early access to their earned wages, contact Paytime today!