saving spending and credit

Saving through Direct Deposit

One painless way to save is to “pay yourself first.” This is easy to do using direct deposit. How does it work?

  1. Each time you make a nonessential purchase, you also deposit three dollars directly in your savings account.
  2. Each time your paycheck is deposited into your checking account, your bank or credit union transfers an assigned amount into your savings account.
  3. Each time you withdraw cash from your checking account, you also transfer an assigned amount directly into savings.

“B” is correct. This is an easy way to build a nest egg. Even small amounts contributed regularly will add up over time. And guess what? Because the amount is automatically deducted from your checking account, you won’t miss it.