Today, my employer finally started paying us via direct deposit. This is a huge step because it completely eliminates going to the bank from my routine. I’ve also now got everything set up to be automatic which makes me life so much easier. So for anyone who needs ideas here’s my automatic cashflow routine:
Every other Thursday:
Employer direct deposits my paycheck
Monday following payday:
Transfer 10% to ING high yield savings account (Emergency cash that I hope not to touch.)
Transfer 30% to Wells Fargo savings (This is money to be saved or used for occasional expenses like car insurance and registration, transferring it out of checking makes it a bit harder to spend on every day things.)
Transfer 30% to Schwab brokerage account (Keep in mind I’m living with my parents rent free so this is my “housing expense” money that I’m saving for a down payment on a house. Once I buy a home I hope to be able to afford to continue 5-10% for investing.)
5th & 20th of each month:
Schwab automatically invests my 30% transfer from earlier into an S&P500 index fund so my money is working for me
This leaves me with 30% for normal spending on gas, food, a normal amount of shopping, Starbucks, and whatever other day to day expenses I have.
Related posts:
December Budget Wrap Up
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{ 1 comment }
My favorite method of eliminating finance moves is getting every single bill automatically taken out of my bank account. I can’t begin to tell you how freeing it’s been. I even have my credit card minimum balance automatically deducted just in case I forget to pay one month.
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