We spend a lot of time here at The Penny Hoarder telling you toautomate your savings.
Are you using your companys direct deposit to send money toward your savings?
But among those users, only 24% split their direct deposit between two or more accounts.
NACHA found the most common use for split deposits was to build anemergency fund(83%).
Wondering why youd ever want to revisit your employers onboarding paperwork?
What if we told you it could make your ability to save almost foolproof?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Harris is currently editor-in-chief ofConsiderable, a personal finance site for people in their 50s and 60s.
She said once you set up direct deposit, its a solid bet your savings will continue indefinitely.
Once youve set it up, its going to take an earthquake to undo it, she said.
All it takes is the time to ask your companys HR department for new direct deposit forms.
You may even be able to make the switch online.
Get paid a different amount each pay period based on your hours?
If you get the same amount each pay period, a fixed amount may work for you.
The act of naming it gives it a purpose, she said.
We have mental buckets in our brain about saving and about uses for our money, she said.
If you give it a name and a purpose, your brain will treat it as off limits.
Lisa Rowan is a personal finance expert and senior writer at The Penny Hoarder.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
