What’s the Best Way to Save? Automatically!
Do you automatically transfer money to a savings account each month? Setting up automatic savings is the easiest and most effective way to save – it puts your extra cash out of sight and out of mind. There are several ways to automate.
- Use direct deposit at work to split your paycheck into different accounts: checking, emergency fund, retirement, investment, other goals. Automating retirement savings is a great way to assure that you receive any matches or employer contributions, too.
- Use direct deposit at tax time to put your refund directly into savings. A federal tax refund is the most money many American households receive all year. Make your refund an opportunity to improve your financial situation.
- Not everyone has access to direct deposit. That can be a hurdle, but doesn’t mean autosaving is impossible. If you don’t have a savings account, open one. Then, set up automatic transfers from your checking to savings account through your bank or credit union. By doing this, you will have joined the 43 percent of American households that are saving automatically outside of work. Many banks and credit unions will transfer as little as $25 monthly from checking to savings.
If your income is inconsistent, it may be more challenging to automate savings, but regular contributions are still possible. Consider automating reminders to check in on your spending and move money to savings when you can.
When you pledged to save and became part of the America Saves community, you set a goal and made a plan to save toward it. Now, make sure you’re using the best method to reach your goal – save automatically!
What’s the best way to save? Automatically! @AmericaSaves tells you how here: http://bit.ly/1NWGkni #savings
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Written by Sara Cooper
Published: 20 April 2016