Automation makes things easier, so how about using it to save money?
While it’s not always easy to do, saving money should be one of your prime financial goals, whether it’s for a down payment on a house, a large purchase, or an unexpected emergency.
Automation can make saving a simple part of managing your money.
Think about it in three steps: Assessing, assigning and automating.
ASSESSING means taking a look at your income, your expenses, and your goals. In the best of all worlds you’re making more than you owe and you can put that extra money into some type of savings account that can help your money grow.
ASSIGNING is figuring out how to save your money to meet those goals. This should include regular savings for:
• Planned things such as a down payment on a home or car, a nice vacation or maybe college tuition.
• An emergency fund to help in case of unexpected things such as a job loss, medical expense or a major home or auto repair.
AUTOMATING means setting up regular transfers of money into your accounts so you don’t have to think about it each time you get a paycheck. It’s a hands-off way to make savings a habit.
Ask your employer about setting up an automatic deposit of your paycheck. Once that’s done, each time you get paid the money will automatically go into your account.
Based on your needs assessment, you can then decide how much goes into checking so you can pay regular expenses for things like groceries and utilities, and how much to put in your savings accounts.
It’s a simple way to make your savings automatic.
Voila! With a little planning you’re automatically making your financial future more secure.
Click here to learn more about your savings options.