Step 1
Decide where you’ll direct the money. Put cash that you may want to access at a moment’s notice in a savings or money market deposit account, and money for investments in a brokerage or mutual fund account.
SEE ALSO -- SLIDE SHOW: 10 Low-Risk Ways to Earn More Interest on Your Savings
Step 2
Gather routing and account numbers for each institution, and check out your bank’s fees and policies. For example, some banks charge to transfer money from a checking account to a savings account at another institution. But if the bank with the savings account initiates the transfer, the transaction is free.
Step 3
Log in to your checking account (or savings account) and set up recurring transfers. Arrange for the transfers to occur shortly after payday so the money comes off the top of each paycheck. That will help you budget your spending and avoid overdrafts.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The payoff
Your money grows without a second thought on your part.
-
Financial Topics You Can Safely Discuss at Thanksgiving DinnerForget politics! Holidays offer families a valuable opportunity to talk about their shared financial interests.
-
Six Missteps to Avoid as You Transition to RetirementDon't lose sight of your finances when you finally reach retirement. These six classic missteps can chip away at the nest egg you’ve worked so hard to build.
-
Roth IRA Contribution Limits for 2024 and 2025Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How to Figure Out How Much Life Insurance You Needinsurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life insurance needs.
-
Amazon Big Deal Days Is Coming! We’ve Got All the DetailsAmazon Prime To kick off the holiday season with a bang, Amazon Big Deal Days runs Tuesday, October 8 and Wednesday, October 9.
-
How to Shop for Life Insurance in 3 Easy Stepsinsurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
-
Five Ways to Shop for a Low Mortgage RateBecoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.
-
Retirees, It's Not Too Late to Buy Life Insurancelife insurance Improvements in underwriting have made it easier to qualify for life insurance, which can be a useful estate-planning tool.
