Three Ways to Make Saving Automatic

Here are some ideas and tools you can use to help make your saving automatic, the biggest key to growing your savings.

When I was a freshman in college, I read a book titled “The Automatic Millionaire,” by David Bach. It really influenced the way I viewed money. Bach laid out a path for financial success that was not dependent on a large income but on making trade-offs and constantly (automatically) saving over time. In other words, it’s not a strategy for the few but the many. This doesn’t mean that it’s easy. It requires discipline and sacrifice.

Below are ideas and tools you can use to help make your saving automatic, the biggest key to growing your savings:

1. Employer Retirement Plan
For many of us, this is one of the easiest places to start. If your employer offers a retirement plan, use it. Your future-self will thank you. Most plans are funded via payroll deduction, which makes saving easy and automatic, not to mention the other tax benefits that may apply. Start with an amount that’s comfortable, and increase it slowly over time.

2. Set Up Recurring Transfers with Your Bank
Moving cash out of your primary checking account into a savings/investment account is a great way to set aside funds for the future. It’s so easy to find things to spend money on if cash is just sitting in the checking account, which is why transferring the amount you want to save is so important. Most banks will accommodate a monthly or even bi-weekly transfer from a checking account to a savings account. Work to align your saving transfers with your paycheck frequency if possible.

3. Get “Techy”
There are some great apps that can help with tracking and automation, as well. For example, Acorns is an app that has a “round up” feature that will automatically round up your everyday purchases and save the change for you. There are others like this that can be helpful. Look for tools that are simple, easy, and automatic.

It takes intentionality and discipline to save over time. Automating your saving is the easiest and most succesfull way to help you move forward on the path of financial success.

If you have questions about setting up recurring saving, or ways to save automatically, give us a call or send us an email – we’d be glad to help!

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This blog post is part of America Saves Week 2022; a national opportunity for organizations to work together within their communities to transform the lives of millions of Americans by encouraging them to save successfully.

Check out our other blog posts written for America Saves Week:

Save Automatically | February 21, 2022
Save for the Unexpected | February 22, 2022
Save for Retirement | February 23, 2022
Save by Reducing Debt | February 24, 2022
Save as a Family | February 25, 2022

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