rufusclark t1_je1it2a wrote
One thing I’ve never understood about this is do you just drain your checking account every month of all the money that gets automatically deposited in there? And then how do you pay your bills that are either online only or auto pay?
Appropriate_Scar_262 t1_je1paec wrote
No, you're set money aside, not draining your accounts. And if you're getting your finances under control you'd want as little auto pay as possible to keep track of your outgoing cash
known-to-blow-fuses t1_je26jr7 wrote
>if you're getting your finances under control you'd want as little auto pay as possible to keep track of your outgoing cash
There are many ways to keep track of expenses that don't require you manually setting up payments for the same 8 things every month.
KittyBizkit t1_je3d7tk wrote
Auto pay is the way to go. Why would anyone argue that it is a bad thing? It is super predictable and ensures your bills are paid on time. You should only ever have to manage discretionary spending. Things like Rent isn’t optional and should be paid using auto pay.
mouse_8b t1_je1ynvw wrote
> money that gets automatically deposited in there
Not everyone has direct deposit, and some people may opt-out in order to get control of their finances. Plus, direct deposit was probably less common when the envelope system was invented.
But yes, on the extreme end, you would withdraw all of your money every check or month to put into envelopes. Then deposit back what you need for online transactions.
Realistically, with a little bit of foresight and math, you could only withdraw what you need to.
KittyBizkit t1_je3ddzj wrote
Opting out of direct deposit and / or removing all of your money from the bank each month is a ridiculous way to “manage” money.
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