The Beauty of Financial Allotments

As federal employees you have access to Financial Allotments, a convenient feature on your EPP page. I personally love this feature to help save money, and you might too! Everyone needs an emergency fund, plus we never know when another furlough may come our way. If you have problems saving money, this feature will help you split your check into different bank accounts.

What the Left hand column of EPP page will look like:
 

To set up a financial allotment all you have to do is input your bank routing and account number. Then input the amount you want to come out of your pay check every two weeks, but first, consider setting up an account at a different banking institution.  This is what I look upon as a way to” trick yourself”, in order to keep your hands off of these accounts. In the beginning I opened an account at a credit union across town in an area where traffic was so bad I hated driving there. When I set up the account I informed the bank that did not want an ATM card. Doing this made it harder to spend money on whim, because I physically have to drive to the bank and stand in line to withdraw money. Now-a-days online savings account can work the same way.  Just don’t link the account to your normal banking institution and leave the ATM card at home.

 See how quickly even small amounts of money from your paycheck can add up quickly.

Amount               Pay Periods            Total

$25                         26                           $650

$50                         26                           $1300

$100                       26                           $2600

Over time your spare cash can add up, giving you a nice pile of cash over the years.  You can set up as many savings accounts as you like, one for emergencies and another for Christmas or vacations. This is why I love using financial allotments, it makes sure the money is out of sight, out of mind and never deposited into your regular checking account.

Ms. Smart