No one’s saying that you’re not working hard on retirement savings, or just savings in general, but there might be one puzzle piece that’s missing from your life if you’re not the saving-type, and that’s automated savings. Automated savings works even for the spendiest of people by either taking a set amount, or a percentage of what’s in your bank account, and keeping it in a separate account, for a rainy day.
Set it and forget it
There’s no maintenance after setup once you start automatic transfers.Which can be helpful if you tend to second-guess your saving decisions, such as whether you actually need to save 5% or 10% of your income per month month. This way you can avoid doubting yourself and keep the savings flowing in the meantime.
Flexibility for everyone
It’s so easy to cater savings needs for everyone. Whether you have short term goals like saving for vacation, or a new car, or long term goals like retirement, you absolutely will find a plan that works for you.
It keeps savings separate
If all of your money is piled into one bank account, doesn’t it all then feel like spending money? The argument for moving your money to another account, separate from your regular account, makes so much sense. Not only can this tactic be used for retirement savings, but multiple savings goals. Vacations, emergencies, or a down payment on a new car, no matter what you’re saving for, automated, separate accounts help you track your goals growth, and keeps you from spending it.
Makes a habit
The key to creating savings habits, like any habits, is repetition. The best way to encourage repeat savings is to set savings dates to coincide with your payday, that way, it doesn’t feel like a shock when $100 is suddenly missing from your checking account. Also try setting a specific day for the money to be debited from your account, first thing on Monday morning seems apt. Set it, and repeat it. Create good habits for yourself.