Budgeting for Your Finance Plan

5 Comments

  1. What a great article! I love it! I do have a question though: How do you make it so that your paycheck is split into three places (retirement, savings, checking) automatically? I’ve just been doing that every month myself.

    • It is pretty simple to set up a recurring automatic transfer from your checking to your savings account through your bank/banks. That would move a set sum from checking to savings every month. You may also be able to ask your accountant at work and have your paycheck deposited into 2 accounts. That’s not always possible though.
      For the retirement account, if the account is sponsored by your company, it should absolutely be possible to defer that money from your paycheck (which also lowers your taxable income=you pay less in taxes). Again, talk to your accountant at work. If this is a personal retirement account, you may not be able to have the money come right from your paycheck but most places will allow you make a recurring monthly transfer. You will just have to look more closely at your investment group and account since the specifics will vary.

  2. It is pretty simple to set up a recurring automatic transfer from your checking to your savings account through your bank/banks. That would move a set sum from checking to savings every month. You may also be able to ask your accountant at work and have your paycheck deposited into 2 accounts. That’s not always possible though.

    For the retirement account, if the account is sponsored by your company, it should absolutely be possible to defer that money from your paycheck (which also lowers your taxable income=you pay less in taxes). Again, talk to your accountant at work. If this is a personal retirement account, you may not be able to have the money come right from your paycheck but most places will allow you make a recurring monthly transfer. You will just have to look more closely at your specific investment group and account.

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