For most 20-somethings, working two jobs to have a cushy retirement may seem like overkill. Even taking the step of filling out a deposit slip to put money in an investment account requires too much effort.
An easier way to get cash from your paycheck to a savings
account is to have your employer directly deposit a portion of your paycheck
in your bank or investment account, or have the funds automatically transferred
from your bank account directly to an IRA.
"I used to make a savings deposit only when there happened
to be extra money in my account, but that wasn't working," says Jennifer
Downey, a 26-year-old architectural intern based in New York City. "I would
deposit every two to three months and the money wasn't accumulating interest
in the mean time. Now as soon as I get paid, $100 a month goes straight
into savings. I don't even count on that money being there."
Consumers who used direct deposit services saved an
average of $1,080 more per year than those who used other savings methods,
according to NACHA -- The Electronic Payments Association, a Herndon, Va.-based
nonprofit agency that oversees more than 18 billion electronic payments