Lately I've been thinking a lot about how our family money flows out of my paycheck. Currently we have it so that a portion of my weekly paycheck funnels into:
1) a money market fund to pay our mortgage on a monthly basis
2) a portion goes into my 401k and 401k ROTH
3) a portion goes to save for the new baby coming
4) the rest goes to our checking account to pay for bills, tithe, regular expenses, and weekly cash usage.
I would like to setup my paycheck to funnel completely into money market accounts to be designated for their usage and withdrawn from the MM fund once a month. This way our money can work for us and not for the bank. Plus any excess won't get spent, but accrew interest and compound.
Like I described in one of my previous posts we'd eventually get to the point where a portion of our income would direct deposit towards an annuity type investment. Then bills would eventually be paid not from the money market, but an annuity type investment. Here are my initial money flow ideas:
1) Income -> MM Mortgage -> Mortgage
2) Income -> MM Bills -> Bills
3) Income -> MM Tithe -> Tithe
4) Income -> MM Expenses -> Expenses
5) Income -> 401k and ROTH 401k
6) Income -> Tax liens
7) Income -> Annuity
I know this appears like a lot of different disbursements, but really we all need to have or money work for us. This way we'll be able to reach retirement early, and have more options for income or "extra circular activities".
Here is a link to my cash flow diagrams from last year that describes what I want to get to and how the rich think.
Sunday, May 10, 2009
Managing your money flow with direct deposit
Labels:
cashflow,
investing,
Money Market
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