When it comes to managing our finances, most of us are juggling multiple goals at the same time, like:
- Paying monthly bills on time
- Building an emergency fund
- Saving for retirement
One way to make things a little easier is to automatically split your payroll deposits into different accounts based on your goals. For example:
- A basic checking account to collect money needed for your monthly bills – things like your rent, mortgage, utilities and debt payments.
- A savings account for your emergency fund. This money would be used for unexpected expenses such as repairs to your home or car, or unexpected medical expenses.
- A retirement savings account. This can be your employer’s retirement plan, or it might be an IRA that you opened on your own.
Be sure to figure out the minimum amount needed to open these accounts and avoid low balance fees — then have additional amounts deposited regularly. Many payroll departments can help you divide your paycheck into different accounts. Although it takes some planning to set up this process, it can help streamline and simplify your finances.
The information on this page is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.