I love the internet. There is a meme for every thing! Direct deposit meme? How random, yet fitting. Since my first job working at a local hardware store in high school, I’ve been a fan of direct deposit. I think direct deposit makes budgeting, and overall money management, a whole lot easier. The one aspect I’ve struggled with is how to divide my deposits between checking and savings accounts.
Our Current Percentages
Right now the husband’s is set up 80% checking, 20% savings. (This doesn’t include 401k/stock.) Mine is set up as 85% checking, 15% savings. This worked for us until the husband’s second job stopped giving him hours.
If you recall, we moved the kid from part-time to full-time daycare when the husband started this second job. This allowed us to work more hours and bring home extra money. Now we don’t have that extra income, but we’re still stuck with full-time daycare costs. It’s put us in a pinch and we’ve been frequently hitting savings. Time to put a stop to that!
Saving Less, Saving Faster
We’ve decided to scale back on our savings deposits and put more into checking. I think in the long run this will help us grow our savings account a lot faster. With more money in checking, we shouldn’t need to touch savings. This will also cut down on transfer fee’s, which are $12.50 per $100. I love how we pay ridiculous fee’s to transfer our own money, doing it ourselves, online – how is this an inconvenience for the bank? I’ll never understand.
The husband is paid biweekly and brings home the most bacon, paying a bulk of the bills. My income basically covers daycare, extra towards debt repayment, and the weekly expenses such as gas, and groceries. The husband will now split his check 90% checking, 10% savings. My checking will be split 90% checking, 5% savings, and 5% into a second savings.
The second savings account is just the Capital One 360 (formerly ING Direct) account I opened specifically for my etsy shop. This is an account I only check one or twice a month. It’s nice to watch the number grow since I never use it other than etsy related fee’s. I figure if I start putting aside 5% that I’ll never notice, we’ll be able to build a separate savings for things like car repairs, vet visits, travel, etc.
How do you divide up your paychecks?