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Automating my savings in 2009

January 6, 2009

I’m allowed to direct deposit into several accounts, so I implemented a new set-up to simplify my cash flow this year.

First, I put half my rent into my money-market mutual fund each paycheck.  This means the rent money never gets mixed up in spending money, plus it earns some (pathetic) interest through the month.  I have check writing on this account, so I can pay my rent on the first.

Next, I put $200 per a paycheck direct deposited into my Roth IRA.  This will come out to $5200 for 26 paychecks, so I have to cancel this for one paycheck.  This will be deposited into a cash fund within my IRA, then I can automate a monthly transfer to an investment mutual fund.  Or do it manually.

Next, I put $600/mo into my high yield savings account.  I’ll adjust this part each month and allocate it to my numerous savings subcategories (though I really only have a couple savings accounts).  Some months, I’ll save more.  Other months, I’ll be pulling from my short term savings (insurance, gifts, travel) and I’ll have to put it into my checking account to spend.

The balance goes into my checking, which will be used for cash withdrawals and paying my credit cards (where I do most my spending).

Everything seems so organized, which makes me happy.  Let’s hope it works as smoothly as planned!

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4 Comments leave one →
  1. January 6, 2009 1:28 pm

    Ooh… that sounds pretty. You know how I love allocating funds neatly.

  2. January 6, 2009 9:34 pm

    I know, it really is beautiful. 🙂 And less transfers will be going on in my Yodlee transactions. Perfect!

  3. January 6, 2009 10:16 pm

    Wow… impressive. It doesn’t let you screw up. 🙂

    I like it.

  4. January 15, 2009 5:43 pm

    I have a bit of a forced savings plan as well. I have a few automatic deductions (some into savings, some into my Roth and 401(k)), but I also have some money transferred to my ING checking account that is rounded up of the bills that I pay out of it…so I always have a little extra money added every time I pay a bill!

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