That "split your paycheck" trick actually worked for me

I kept running out of money before the next check came in. Tried a dozen budgeting apps and none of them stuck. Finally just set up my direct deposit to send 60% to my main checking and 40% to a savings account I can't touch easily. First month, I had $340 left over when rent hit. Anyone else do a forced savings split like this or am I late to the party?

3 comments

3 Comments

hart.cora1mo ago

the "40% is losing value to inflation" argument always cracks me up. yeah, inflation exists but so does the overdraft fee i kept paying every month when i had zero buffer. my partner tried that "invest everything" approach and ended up needing car repairs on a credit card. the split paycheck thing works for people who know they lack self control, plain and simple.

elliotadams1mo ago

and actually that 40% sitting in an account you can't touch is just sitting there losing value to inflation while your landlord raises rent every year. you're essentially paying yourself last instead of first by hiding money from yourself. i'd rather just set up automatic transfers to my bills the day after my check hits and keep that extra cash liquid for emergencies or opportunities. if you're constantly running out before the next check, the problem isn't where the money goes, it's that you don't have a handle on what you actually need versus what you want in the moment.

margaret_jackson731mo ago

Totally agree on the automatic transfers, that's what finally got me out of the paycheck to paycheck cycle. I set up my bills and a small savings chunk to move out the day after payday, and suddenly I wasn't stressing about running short. It's way easier to budget with what's left than to try and guess every month what you'll actually spend.