Monday, February 20th, 2017

Follow Us

Split Your Paychecks Before They Even Arrive

Make sure some of your money always goes towards saving.Saving might seem easy until that paychecks lands in your hands or your bank account. Then, things start cropping up: You need to run to the laundromat, then the grocery store; you just got paid, so you splurge on a night out; there’s some money left, so you go shopping; next it’s time for rent, utilities and pretty soon the money is gone.

One way to make sure you stick to your savings plan is to split your paycheck in half before it even arrives. Most jobs that offer direct deposit will let you register two or more accounts to each receive a portion of your pay. So part of the money will go into a savings account, where you won’t touch it, and part will go into checking so you can pay the bills.

You can even set up automatic savings or investing plans so that as soon as the check clears, the money is sent off to a higher-interest account (although good luck finding one) or your investment portfolio.

The advantage of splitting your checks is twofold: one, you’ll never forget to save, because it’s done for you. And two, once you’ve put that money away, it’ll be much harder to justify taking it out of savings.

So it just may be that the safest way to double your money is to split it in half.ADNFCR-3389-ID-19899856-ADNFCR

This entry was posted in Money Management. Bookmark the permalink.