The easiest and most effective way to save is automatically. This is how millions of employees save through 401(k) and other retirement programs at work. It’s also how millions of Americans save at their bank.
How to Save Automatically
The best automatic saving is when you make a decision to do so, then it just happens:
- Every pay period, your employer deducts a certain amount from your paycheck and transfers it to a retirement or savings account. Ask your HR representative for more details and how to set this up.
- Every month, your bank transfers a fixed amount from your checking account to a savings or investment account. Visit your nearest Burke & Herbert Bank branch or call us at 703-684-1655 to learn how easy it is to set this up.
Why Automatic Savings Works
Over time, these automatic deposits add up. Fifty dollars per month accumulates to $600 per year and $3,000 after five years, plus interest that has compounded. Soon you will be able to cover unexpected expenses without putting them on your credit card or taking out a high-cost loan. If you can’t hit the $50 per month target, you can start with a lower amount.
‘I Don’t Have Enough Money to Save’
You also could start simply by saving your loose change. If every day you just put some or all of the loose change in your pocket or purse into a jar and don’t spend it, you will find that in a year you will probably accumulate over $100.
Just saving loose change has persuaded many Americans that they are able to save. And when they become convinced that they can save, they find other ways to build an emergency fund or save for other goals.
Start Small, Think Big
Everyone has the ability to save. You can start with only $10 a week or month. Over time, your deposits will add up. Even small amounts of savings can help you in the future.
Save automatically. As millions of savers have learned, what you don’t see, you won’t miss.