How To Use The Envelope System With Direct Deposit


Today, I wanted to tackle a question that I found on Facebook:

 I have direct deposit with my paycheck. How do you recommend doing the envelope system after my paycheck has already been deposited?

By having direct deposit, you are already making your life easier. You are having your money deposited into your account, many times sooner than expected in my experience, and don't usually have any wait time to access your funds. That is very nice news!
As far as doing the envelope system after it's already been deposited, all you have to do is make a nice little withdrawal from the bank in the amount that you need for your envelopes and then place the money in the envelopes for that pay period. By doing this, you will show the transaction of the withdrawal (if you are tracking with software) and can easily split the transaction in the system to reflect the different envelope amounts.
It's no different then if you had to deposit the check and get cash back after each paycheck to refill your envelopes. I hope this helps answer your question!

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Steven Goodwin

Owner/Blogger/Consultant at MyFamilyOnABudget
Steve Goodwin, a stay-at-home dad of two girls is passionate about finances and is helping others just like you get out of debt and build wealth handling money God's way. His goal is to inspire people like you to gain control of their finances by destroying debt and building wealth using their cash flow.
Posted in Finances, How To and tagged , , .