You may be one of the 145 million Americans already using direct deposit, but did you know your direct deposit can help you put money away for the future? Most people with direct deposit know they can have their paycheck deposited automatically, but did you know you can usually have a portion go to one account, while the rest goes to another? You can use this as a simple, easy way to save. And since the money never enters your checking account, you won’t be tempted to spend it on other expenses or unnecessary items.
Similarly, you can arrange to have funds directly deposited into your retirement account or an extra emergency fund. If you get a raise, don’t simply spend the extra money. Make sure you adjust the amount you are direct depositing into your savings. Depositing money directly into your savings account makes it easier to save both for the long term, and to ensure you have an emergency fund to keep unforeseen expenses off your credit card.