How to Make Saving Automatic
One of the best ways to save is by making it automatic. The “pay-yourself-first” strategy works because you won’t miss money you never see. Here are a few tips to help you save early and often.
- Determine what you can afford to save each month (use our Personal Finance tool to create a budget)
- Setup a recurring direct deposit from your paycheck into a specified savings account
- Limit access to your savings account, so you’re not tempted or don’t accidentally spend it
- Utilize Round It Up to round up GSB debit card transactions to the nearest dollar and grow your savings automatically
- Increase your savings direct deposit amount every time you get a raise
- Allocate at least some of any unexpected funds, like a bonus or tax return, to savings
- Reallocate funds from a newly-paid-off loan to now go towards savings
Creating good savings habits early on will help you harness the power of compound interest to boost your savings. Establishing an emergency fund can also help you avoid high-interest debt.
Our Financial Wellness Coach, Lesley Warn, is your go-to resource for all things money management and is available to help automate your savings. Get in touch with Lesley.