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Pay yourself first. Setup an auto transaction to move a set amount into a savings account on payday - that way at the end of the pay period when you run out of
by grecy 7y ago
Pay yourself first.
Setup an auto transaction to move a set amount into a savings account on payday - that way at the end of the pay period when you run out of money, you've already saved how much you wanted to. If you wait till the end of the pay period to save, there will never be any left.
My trick is to increase the amount going into savings every time - just a little. Eventually you'll find the point where you're saving the most you possibly can, and you might need to back it off just a touch.
This maximizes my savings to the point where I work for a couple of years, then I can take years off and drive around the world.
Rinse, repeat.
- astura 7y ago>Setup an auto transaction to move a set amount into a savings account on payday Better yet, go to payroll and have them split your check, $x or x% in savings and the rest in checking. If you do it by percentage then your savings will grow in proportion to your income.
- inetsee 7y agoAs good as this idea is, I suspect that relatively few payroll departments are set up to provide this option, and most of them would resist going to the extra effort to provide it.
- astura 7y agoWhat? All the major payroll processors/front ends (ADP, Paychex, PeopleSoft) support this "out of the box," no problem whatsoever. Even when my employers was on paper forms for direct deposit there was always an option for multiple bank accounts. I've never NOT had my paycheck deposited into a multiple accounts except for when I was a teenager at my first job.
- kiwijamo 7y agoMy employer’s payroll charges a fee for each additional bank account that they are to pay into.
- grecy 7y agoI like the idea, though I personally prefer to have all the control. Payroll will get mighty annoyed with me when I want to change the amount going into a savings account every couple of weeks.
- rayhendricks 7y agoI’m not sure if vanguard would be able to get payroll deposits.