Saturday, March 29, 2014

Saving on a rainy day

Since my first full-time job in 1983, I've only had 2 employers that did not pay me via direct deposit. I have always set up the funds to go into my checking account. That didn't change when I began this job 2 months ago.

It only took my second paycheck to come in via direct deposit. When I verified funds, I found it went into my savings account instead. When this has happened with previous employers, I'd contact payroll to correct the error.

In today's pouring rain, I realized 'correcting the error' would be a mistake. Why?

Time and money.
1.  It only takes me 1 to 3 minutes to transfer the funds from savings to checking using my credit union's mobile phone app.

2. When I choose an amount to the nearest whole dollar, it saves me a ton of time to reconcile the balance. As I don't want to leave less than the account's previous balance, it forces me to save, even only if it seems like a little.

On my first deposit, I left about $50 in savings and transferred the rest to checking. On my most recent paycheck, I left $20 in the savings account.

Most money savers already know this, but as a fiscally conscious yet frugally challenged person, my brain's bulb lit up 200 watts. I just saved $70 in my last 2 paychecks. 

I get paid every other Thursday. That's 26 paychecks. If I leave $20 in my savings account from every paycheck for the next 12 months, I'll have saved $520.

Chump change no more.

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