Jul

31

Direct Deposit - How To Use It To Effortlessly Budget Your Money

Posted In: Personal Finance

If you loath just the thought of having to keep a budget, you are not alone. But direct deposit can make it ease. In fact, it can practically budget your money for you.

At a company I once worked for I was amazed at how many of the employees did not take advantage of the direct deposit benefits. Some people just did not trust the banks. However, there is a reason you can trust the banks in this area. And, either way, without this wonderful tool you are missing the easiest way to budget your money and stick to it.

Saving money on transportation to the bank is one plus, but did you know that your bank may even waive certain fees on your account if you use Direct Deposit. (This is not even to speak of the new added charges some banks will take from you to use the walk-up teller.)

Another positive to consider if you have direct deposit is that you will have your money in the bank before those with paper checks. The direct deposits are scheduled for the exact day the checks are issued. But did you know that the deposit may even be made before your company has decided to hand out the paper checks?

Lets not forget to mention that you may even get your money deposited before a holiday when those who have paper checks may have to wait until after the holiday before they get theirs.

Granted, in order to get direct deposit started, you will have to give your company your bank information, such as your bank’s routing number and your personal account number. But I guarantee you, your company would have more interest in finding out why something—if it even ever would—comes up amiss in your account than you do. They will want to find out, by all means, that they were not responsible. And if they are, they are required to remedy the problem.

But back to the benefits of direct deposit. There is one great benefit most people are not talking about. It is the power it gives you as a tool to better budget your money.

The first thing to understand, however, is that it does not only provide the possibility to simply deposit your check directly into your bank account. It has other features, as well.

Some companies may not offer their employees the feature I am going to mention, but if they do, it is a great one. It is the possibility to deposit your money into more than one account. That is, you may be able to specify a certain percentage of your pay to be deposited into your checking account and another percentage to be deposited into your savings. But, the great part is, if you have this available, you can also specify a percentage to be cut as a paper check.

This is the budgeting tool that gives you the power to manage your money better. Think of it, if you only get a paper check for the amount you want to allow yourself to spend, it is a lot easier for you not to spend beyond that limit. All you need to do is pretend like that is all the money you have. And make sure you have deposited enough into your checking to cover your bills.

By the way, if you want to know a guaranteed way to succeed financially, get my free ebook, click here: Make $10,000s With Your Mortgage. Michael G. Murphy is the owner of Personancial™ Services, a company committed to helping individuals and families achieve financial freedom.

Article Source: Direct Deposit - How To Use It To Effortlessly Budget Your Money