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The WMD Savings Account – The Distributor

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This is a diagram of the savings plan.

On Monday, we began discussing the WMD Savings method or plan.  If you haven’t read it yet, be sure to read the Introduction to the WMD Savings Method.  WMD stands for Well, Mule and Distributor.  Today, we are going to talk about the Distributor portion of this savings method.

The distributor has the most important job of them all, without it, the plan would not function at all.  Often, your employer can fulfil this role through direct depositing, but if your employer does not direct deposit, then you may need to manually act as the distributor.

Essentially, the Distributor distributes the money across the accounts in the manner that you decide.

Direct Deposit?

Direct deposit is a means of getting your paycheck.  You provide your bank account information to your employer, then they begin depositing your pay checks into your account rather than giving you a check to cash/deposit.  Smaller employers may not afford this option due to costs, but it doesn’t hurt to verify if they do offer it.

Some employers even allow direct depositing to multiple accounts.  Mine, for example, allows me to direct deposit into up to 3 different accounts.  This allows me to make extremely flexible variations of this savings plan.    Two deposit options would allow you to execute this plan automatically.  One or no direct deposit options will require you to act manually on each pay check.

My Employer Doesn’t Allow Direct Deposit

Congratulations!  You’ve now earned the title of Distributor!  Now, don’t worry, it isn’t too difficult, it just requires a bit of control on your part.  What you will want to do is deposit the appropriate funds into your “Well” account (which we will cover on Friday), then deposit the remainder into your “Mule” account.

This may seem tedious at first, but you will get used to it.

I’m Not Sure If I Can Do Direct Deposit

Speak with your HR Department just to make sure, the worst that can happen is they say “no.”  I’ve worked at a couple of companies that didn’t openly mention the option (probably because of costs), but did actually furnish the direct deposit luxury if you asked.  The other advantage to direct deposit is that you get your money faster.

It’s nice not having to drive to the bank with a check.  Depending on your financial institution, you may even have your money deposited by 12:00 AM on pay-day!

It’s Basic, but Fundamental

I know the Distributor is basic, but it is fundamental to the success of this plan.  Automating this plan will take most of the burden out of distributing your cash differently.  You’ll do yourself a big favor automating the process with direct deposit.

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