Monthly Money Flow
I find it interesting to see how people “handle” their money. I’m not talking about how people “manage” their money (by investing in stocks, buying real estate, etc.) I’m talking about how people actually deposit their paychecks, move money between various accounts, and spend their cash. Here’s an “inside look” at how my money “flows throughout the month”.
At the first of the month, I deposit my wife’s paycheck at our local bank. (Neither of our jobs offer automatic deposit.) I deposit the check and get half-a-month’s worth of cash. I then go home and pay ALL of our monthly bills. I also login to our online savings account and schedule a withdrawal of 1/3 of our monthly “savings goal”. I like to leave a comfortable amount of money in our primary checking so I don’t transfer every “extra” dollar.
About two weeks into the month, I deposit my paycheck. I deposit the check and get the second half of the month’s cash. I go home, login to my online savings account, and withdraw 1/3 of our monthly “savings goal”. Next, I login to my brokerage account and withdraw my monthly “investment goal” amount.
Near the end of the month, I analyze my situation. If I need a little “extra” money for “life stuff”, I refrain from withdrawing the rest of my savings goal. If I don’t need any extra money, I withdraw the remaining 1/3 of my savings goal amount.
At the end of the month, I “sweep” all of the money that is left in my checking account (minus a $100 “cushion”) into my online savings account and/or my brokerage account.
Side note: If I did NOT pay ALL of my bills on the first day of the month and instead I paid them all when they were actually “due”, I could earn a few more dollars in interest. But, I feel so much better knowing that all of my bills have been PAID! Peace of mind ROCKS!
There are two “bills” which I pay with cash or check. We pay for daycare and our daughter’s gymnastics classes on a weekly, not monthly, basis. These two amounts come out of “my” paycheck.