Checking Account Not Primary on Direct Deposit

[elkbark]

Not an earthshaking tip, but something that I have found helpful... (For folks that currently live on part of their salary, but also send some of their salary to an after tax brokerage account.)

When setting up direct deposit for your job income, don't make your checking account (the one you pay the bills with) your primary DD account.  Instead, make it a secondary account with a fixed $$ allocation.  This should be just what you need to live on.   

Make your brokerage account the primary account..  In this way you automatically sweep any bonuses, extra income, raises, etc to the brokerage account.

Saves some time if you are already a badass and saves some temptation if you are not.

[burly]

That's a good idea... I've done the inverse - a fixed amount into investments before... But usually all those bonuses are accounted for... Maybe once the debt is all gone, I'll feel more comfortable doing the latter.

[anonymous2]

I did something similar to this for a few years when I was hourly, but making a fair bit of overtime.
I had a flat amount put into my chequing account and everything over that into savings. Worked well and helped me avoid the spending creep that comes from getting a huge cheque!

[4alpacas]

Not an earthshaking tip, but something that I have found helpful... (For folks that currently live on part of their salary, but also send some of their salary to an after tax brokerage account.)

When setting up direct deposit for your job income, don't make your checking account (the one you pay the bills with) your primary DD account.  Instead, make it a secondary account with a fixed $$ allocation.  This should be just what you need to live on.   

Make your brokerage account the primary account..  In this way you automatically sweep any bonuses, extra income, raises, etc to the brokerage account.

Saves some time if you are already a badass and saves some temptation if you are not.

Great idea! I just updated my accounts. It takes less effort now! :)

[amha]

YES. This is the absolute best personal-finance thing I've ever done. Budgeting is annoying---but this way, I can just think, "I pay myself $1200 a month", and I make that cover my living expenses.

[SunshineGirl]

I just started doing that about a month ago, and I can tell it's going to be a great way to maximize savings.

Now I have one account for all incoming money, and then I transfer a certain fixed amount on the first of the month to checking, and from that, I am paying for everything and building cushions for larger expenses.

[etselec]

Yup. Another advantage of this is that you can make the deposits to your checking account on whatever schedule works best for your budgeting - weekly, biweekly, etc. - regardless of how often you actually get paid.

[4alpacas]

I've now received 3 pay checks this way, and it's great! I've seamlessly maxed out my Roth for 2014 and started saving $1k/ month outside of my retirement accounts with no effort.

[elkbark]

I've now received 3 pay checks this way, and it's great! I've seamlessly maxed out my Roth for 2014 and started saving $1k/ month outside of my retirement accounts with no effort.

That's terrific, glad to hear that!   This was one of those ideas where I thought, "Wow, pretty simple idea, why didn't I think of this years ago.."