We all know we should save money, but many of us don’t do it. You want to save. You have the best intentions. Yet each month comes and goes with nothing left to put towards savings after the bills are paid.
We get it. And, you aren’t alone. Learning how to make savings a priority is a common struggle.
Here’s the good news: Saving doesn’t have to be hard. If you want to make saving easier, put your money on auto-pilot. TFCU can set you up with automatic monthly deposits so you don’t even have to think about it. You can start small, but just start.
Online Banking
First, if you don’t already have online banking, get signed up. Open a savings account that links to your checking account, so you can easily transfer funds from checking to savings.
Automatic Savings
The easiest strategy is to automate savings. Simply put, have part of your paycheck automatically deposited into your savings account as soon as your check is deposited. It’s called “paying yourself first,” and it works. When you utilize automatic savings, you don’t even have to think about it. You won’t forget to put it in savings, and you won’t end up spending it elsewhere.
- Payroll deduction is one automation option. Simply ask your employer how you can set up payroll deduction. You will provide your savings account number and direct how much from each check will be directly deposited to savings. The remainder of your paycheck will be deposited to checking to cover your monthly expenses.
- Automatic transfer is another option. If you don’t have direct deposit, you can set up an automatic transfer from your checking account to savings account each time you are paid. With this option, you go online and set up an automatic transfer from checking to savings. Set it up to transfer each time you are paid.
Either option is great. They both take money directly from your check or from your checking account and send it directly where you need it – your savings account.
Leave It There
So here’s the thing. Automation is the easy way to save. Not spending the money is the challenge. Commit to leaving the money alone unless you absolutely need it for an emergency. Your goal is to learn to live without that cash for your regular expenses. Remember, the longer you can leave the money alone, the faster it will grow!