Secret Direct Deposit Savings Strategy

Tired of living with your parents, having to borrow gas money and your paycheck being gone before you even receive it?

This was me, stressing on how the bills were going to magically get paid month after month. Finally, I reached the conclusion that living paycheck to paycheck was not worth the obstacles that came with the lifestyle. Along the way I managed to stumble upon a savings strategy that forever changed my financial freedom. I strongly believe it can change yours too.

My Journey to Financial Freedom

At 23 years old I decided to move out of the party house to gain more focus. When offered to move in with my sister, the opportunity to save $400 monthly was a no brainier. I had been working with a commercial demolition company on multiple prevailing wage jobs with fringe benefits. For anyone that does not know what prevailing wage or fringe benefits are that is another story for another day. To make a long story short, I was able to save up a few thousand dollars from making the extra prevailing wage pay. Some how my fringe benefits were backed up a few months. Upon receiving them I was in for a surprise of a few thousand dollars that landed in my lap. In just 5-6 months I managed to save a good little cushion. This led me on the journey to finding the savings strategy you are all probably anticipating to hear.

Being the reckless kid that I was, I ran my first vehicle into the ground with no regrets. I had just been promoted at my new job and was granted a company vehicle, luckily getting to and from work was not an issue. Not having a personal vehicle anymore and loving the feel of driving the new company truck led me on my pursuit to buying my current Chevy Silverado. After 3-4 long months of searching as a 24 year old with no credit to my name, patience and a stern no fold mentality brought me to Altura Credit Union. The bank that financed me as a ghost in the credit world when the savings strategy began to unfold.

The Secret Direct Deposit Savings Strategy

Now, for what we have all been waiting for. This Credit Union offered a deal. The deal being, if I opened up a bank account and set up direct deposit, they would in turn drop my APR 1%. This bank just so happens to be about 30 minutes to an hour away from my house depending on traffic. One day I sucked it up, went in to fill out the paperwork and set up my Altura Credit Union bank account when it dawned on me. Wait a second… You mean I already have direct deposit set up with my existing bank account and I can set up a percentage of my pay to go to another account as well? I instantly set it up to deposit 25% of my weekly paychecks to deposit into my new bank account.

Formula Break Down

Lets use an example weekly paycheck amount of $1,000 to make it easy when breaking down our percentages.

  • 25% of $1,000.00 = $250 Weekly deposit to your new credit union CUSHION account.
  • 75% of $1,000.00 = $750 Weekly deposit to your existing direct deposit CHECKING account.
  • 1 year = 52 weeks

Note: The (2) biggest KEYs to making this work is purposely not getting a “DEBIT CARD” as well as opening with a bank that is inconvenient to get to. Also I recommend opening with a smaller bank. (e.g. A Credit Union.)

Now, in 2016 between the months of January and June, there are 26 weeks which would leave you with $6,500.00. All of a sudden in just 6 months you have accumulated a nice cushion. If you were to not touch the money in your new cushion account for an entire year, you would have accumulated $13,000.00 in just one year.

At the end of the day this has been proven to work for me. Now with my wife staying home and raising our son I have re arranged the percentages that best fit our needs. One must understand that consuming materials is a distraction and without self control this can not be done. Being conscious of my needs while applying this strategy has allowed me to splurge in a controllable manner. I am currently still able to save money using this system which has yet to fail me. I feel this formula can help and works at any pay grade when prioritizing and budgeting to live within your means. Take a stab at it, I dare you,

Peace & love,



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