Financial Learning Center
The Easy Way to Save: Automatically
Make Saving a Regular Habit
Whether you dream of buying the car you've always wanted, purchasing your first home, taking a much-needed vacation, or saving for a rainy day, there are a number of reasons to save up, even if it's just a small amount each month.
No matter how large or modest your personal goals might be, setting up and sticking to a regular savings plan is a smart money habit that everyone should establish. To get started, an easy way to save money is to set up a direct deposit or automatic transfer of funds from your regular paycheck into a savings account. Once you take advantage of this tool and see how it's such an easy way to save money, you'll find that you don't even notice the amount deducted from your pay.
Here are three things to consider when starting an automatic savings plan:
1. An Automatic Savings Plan Keeps You Accountable for Your Savings Goals
When it's not up to you to take the time to put money away at regular intervals, you can sit back and watch your savings pile up because all the work is done for you. Don't let your busy schedule get in the way of saving for your future!
2. Choose the Right Type of Savings Account for Your Needs
This one is key to helping you meet your savings goals. Look for an account that makes it easy for you to save without paying fees (no- or low-minimum balance requirement) and that pays interest on your entire savings account balance.
3. Automatic Savings Plans Help Build Healthy Financial Habits
Spending less than you make is the key to starting your savings account and adding to it. If you schedule your automatic transfer when your paycheck hits your checking account, the money you have allotted for savings never mixes with your spending money. Over time, you'll get used to living on a leaner budget, which makes reaching your savings goals that much easier.