The Savings Sweep – Today’s Quick Tip

Today’s Quick Tip – The Savings Sweep

At the end of each pay cycle, right before I receive a paycheck, I’ll do a savings sweep.  I take a peak at my monthly budget, notice any categories where I might have “left over” money, and sweep that money from my checking account into my savings account.

Benefits of Today’s Tip –

  • Savings account pays higher interest rate than does checking account.
  • Money in savings account is harder to spend than money in checking account.
  • This gives me one more chance to analyze and tweak my budget.
  • I am motivated to live under-budget, so that my sweep amount can be maximized!

Bonus Tip –

If you are in debt, consider a payment sweep.  Instead of sweeping “left over” money into savings, consider making an additional payment to one of your creditors.

I always keep a small amount in my checking account.  This would be especially important for those living without free checking.