Everyone knows how important saving money is, but oftentimes, life gets in the way.

Unexpected expenses, such as car repairs, medical bills and the overwhelming feeling of managing your budget, can derail our intentions to save money.

By the end of the month, adding money to your savings becomes too easy to skip. However, there is a way to overcome this: automating your savings.

How Automating Reshapes Your Saving Habits

Instead of having to consciously transfer money into your savings, automating the process does the hard work without you having to think about it.

How can automating the process benefit you?

Removes Decision Fatigue

• Having to manually save money requires you to log in to your online banking platform, select an amount, and start a transfer every two weeks, month, or however often you add to your savings. Changing to an automatic transfer removes all those steps, so that you remain consistent, accountable and have some of your time back.

Out of Sight, Out of Mind

• When extra money sits in your checking account, your brain subconsciously views it as available to spend. Having an amount automatically moved into savings creates a barrier that curbs impulse spending.

Effortlessly Builds Your Emergency Fund

• Starting from scratch to create an emergency fund can feel intimidating. Automation breaks down large goals into smaller and manageable contributions. Over time, these contributions grow into a fund that offers peace of mind and financial stability.

How to Set Up Your Automated Savings

Ready to simplify your savings? It’s simple to set up a secure, automated savings process.

Choose Your Method

• Direct Deposit Splitting: Ask your HR or payroll department to split your paycheck, where you can route a percentage (like 10%) or a set dollar amount straight into your savings account.
• Recurring Transfers: If you can’t or don’t want to use direct deposit, you can sign in to your online banking platform to schedule automatic, recurring transfers from your checking account into a savings account on a schedule that fits your lifestyle.

Take Your Payday Into Account

• To keep your cash flow balanced, schedule your transfers to your savings account to move immediately after your paycheck hits. Adding to your savings account at the start of a pay cycle helps reduce the risk of accidental overspending.

Start Small and Build Gradually

• Getting started is the most important step. The “perfect” time to start saving is today! Start by setting small amounts each day, that way you can retain control with increases, adjustments or pausing your transfers depending on your budget needs.

Building a Strong Foundation for Your Future Self

Manual budgeting can be stressful, and automating your savings replaces that stress with confidence that comes from a growing financial net.

Automating your savings is a simple and quick process, but if you have any questions about your financial future, reach out to one of our Certified Credit Union Financial Counselors.