Automatic withdrawal from your checking account.

Discussion in 'Investing For Beginners' started by trixiezzz, Feb 12, 2005.

  1. trixiezzz

    trixiezzz Member Original Member

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    I keep hearing that the best way to systematically invest over time is to set up a regular automatic withdrawal from your checking account so that the same amount is taken out every payday. I'd like to do this in principle. But am worried that once started it'll be a hassle to stop if my expenses go up or something.

    Has anyone had experience doing this?? :?:
     
  2. Blueberry

    Blueberry Member Original Member

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    I have money withdrawn every payday and put into a savings account. It is a pre-authorized debit. I just record it in my check book the same way you would any automatic payment..it is a painless way to save.
     
  3. paula0000

    paula0000 Member Original Member

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    automatic withdrawals...

    That's a great way to make savings painless. It's like you don't notice the money gone.
     
  4. DznyDreams

    DznyDreams New Member Original Member

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    I already do this with a savings account, and I would consider it for other investments if they were low-risk.

    Diane
     
  5. moneytree

    moneytree Member Original Member

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    They say "pay yourself first". Just consider it a bill that HAS to be paid and perhaps you can manipulate your other expenses in such a way that you never have to give up your investing money. I'm preaching more to myself here than you. :wink:
     
  6. trixiezzz

    trixiezzz Member Original Member

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    I know what you mean! It's hard to get your brain to quit thinking "well I can always go dip into that savings if I need to!"
     
  7. WeareMom

    WeareMom New Member Original Member

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    Most banks make it very easy. I actually have several automatic deductions/transfers done every month. I have one for each child's college account, plus a small amount that goes into the "vacation/fun money" account. And I am giving serious consideration into opening my own version of a Christmas club. And since it is right there in the same bank, if I am in need of "emergency" funds, I can just go right in and transfer it into my checking account. When my kids passbook savings have a significant amount in them, then I transfer a bulk sum into a money market or CD.
     
  8. chop456

    chop456 Member Original Member

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    I have automatic deductions for my kids college funds and just recently opened up a vacation/fun money account. I have not set up to have $$ automatically put into this account, but plan on transferring a specific amount each month. I like the idea of automatic transfer, then it happens no matter what rather than well, this month I'll just put in $10...
     
  9. eagertolearn

    eagertolearn Member Original Member

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    Can this be done for the ING accounts?
     
  10. 1MegMeg

    1MegMeg New Member Original Member

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    Yes it can. :)
     
  11. moneytree

    moneytree Member Original Member

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    My husband can do this where he works. He's been thinking about it for over a year. Money management is not his strong point so I have to do the research and take my findings to him. I just haven't had the time to really get into the whole investing thing and now I feel at our age it is a MUST. We will have it deducted from his paycheck and so we will not miss what we never see. We'll also have all his raises put straight into investments so therefore we won't miss that money either.
     
  12. paula0000

    paula0000 Member Original Member

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    I just remebered- some employers when they automatically deposit paychecks- will actually deposit into more than one account. That makes it easier- you can have $100 say per week deposited into another bank altogether.
     
  13. eagertolearn

    eagertolearn Member Original Member

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    It's really the best way to set up a systematic savings plan, so I don't see why it wouldn't work just as well for investing.
     
  14. jeepgirl30

    jeepgirl30 Member Original Member

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    I have my pay direct deposited into my main checking and also into a savings. Very painless and if I need to change the amounts it is very simple and usually takes effect within one to two pay cycles depending on when I get the word to payroll.
     
  15. paula0000

    paula0000 Member Original Member

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    Also, if you have part of the $ deposited into an account with no debit card- it makes it harder to get the $ and easier to save!
     
  16. thrilla

    thrilla Member Original Member

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    Yes, not only can you set up and automatic transfer with ING, you can do direct deposit as well. Just go to your account and you will see a like for direct deposit. All you really need is the routing and account number.

    I use this to set up my PayPal account also so I can directly deposit my funds from PayPal to ING.