Many people struggle with saving extra money. Whether they don’t have enough extra income left at the end of the month, don’t know where to start, or struggle to remember to save, it can be challenging to handle unexpected financial emergencies without proper savings. One trick that can help you save more is to automate your savings. Let’s discuss the main reasons to automate your savings:
If you struggle to save money, you’re not alone. Saving money takes commitment and practice. But you can make the process easier. You can ensure that you always set at least a bit of money into your savings account by automating your savings.
How to automate your savings
You can access automated savings tools in your banking app or through your bank’s website. You get to decide how much you want to save and how often to do it. Plus, you always have the ability to alter your savings plan if your financial situation changes. You’re in complete control.
Once you set up recurring transfers, your money will automatically be transferred from your checking account to a savings account. It’s convenient and easy to do. Before you know it, you’ll have the emergency fund you’ve been meaning to start.
Here are four reasons to automate your savings:
1. You won’t forget to save
If you’re relying on manual money transfers, you may forget to move extra money over to your savings account. With automated saving, there’s no more no more forgetting.
2. It makes your savings goals a priority
Automating your savings ensures that you make your savings goals a priority. It can be easy to get distracted, make excuses, or let other financial goals take center stage as you go through life. But saving is essential, and it deserves to be a priority.
3. You’ll save time
While transferring money from one bank account to another doesn’t take long, it can feel like another task on your busy to-do list. When you automate your savings, you’ll save yourself time. Life is already busy enough, so make your life easier by setting up an automatic savings plan.
4. It ensures consistency
When you automate your savings, you’ll also be more consistent because you’ll be saving money regularly. The more you save, the more your money will add up over time. Consistency is key when it comes to making your personal finance goals happen.
Those are a few of the reasons to automate your savings.
Should you open a separate savings account?
It’s good practice to keep your savings separate from your spending money. Consider putting your extra money into a saving account, whether you’re saving for future emergency expenses or a rainy day.
It’ll be less tempting to spend the money without reason when it’s not sitting in your primary checking account. If you struggle with overspending, learn why budgeting is so important.
Plus, you can earn interest on your savings when it sits in a savings account. If you keep your extra cash or change in a piggy bank, you won’t earn interest.
Commit to saving with these reasons to automate your savings in mind
Are you trying to hit a savings goal? If you’re not a regular saver, now is a great time to start. Figure out how much you want to save and how often you want money to be set aside. Do what works best for your finances. For some, saving bi-weekly is best especially if they receive a bi-weekly paycheck. For others, saving once a month works well.
You don’t have to save a lot of money if it’s not in your budget. Even if you can only commit to saving $10 a week, it will make a difference. If you struggle with saving, consider automating your savings so you’re prepared for your next unexpected expense or surprise bill.
