- Open an account with ING Direct, an awesome online bank that used to offer awesome interest rates, until our economy tanked.....sigh.
- Open 6 accounts and name them as follows: January/February, March/April, May/June, etc. You could open 12 accounts if you prefer, but this feels obnoxious to me.
- Determine your budget needs per month. There are a million online tools to help you do this if you don't know how to. So, let's pretend I figure out I need $1000 a month to survive (this is just for funsies, folks).
- Beginning with the Jan/Feb account, deposit $2000 ($1000 a month for 2 months, see?). Do this in every account until you run out of money from your savings.
- Step back and take stock: Maybe you have enough money to fill your goal of $2000 in all six accounts. YAY! Stop working for a year. JUST KIDDING. REALLY, KIDDING.
- Whenever you get a paycheck, deposit it into the next account until there is $2000 in each account. **note: If this is a job that is not taxed in advance, I tax myself...put 25% of this check into a special "tax fund," so it is there in April when I need it.
- At the beginning of each month, transfer $1000 from the appropriate account into your checking. Pay bills, etc.
- At the end of each month, if there is money any left over, transfer ahead to another lean month OR put in a special savings.... I have a "couch fund," a "computer fund," and a "christmas fund."
Pure genius, no?