Today is the third in a series of posts focused on America Saves Week. Yesterday we talked about paying off high-interest debt and how to make it happen. Today’s focus is saving automatically.
If you want to be successful with saving money, make it automatic. Anytime you need to remember to do something, especially if you’re starting a new habit, your brain has to save the reminder in its haphazard filing system known as your memory, and then be able to access it when needed which requires another reminder.
Remembering to transfer the savings with the help of your budgeting software like Quicken can be equally problematic. I’ve had much experience with this! I have regular automatic transfers set up to go into different accounts. Any time, I have modified the amount to transfer for one time, inevitably I forget to go back and change it. Then, occasionally, I incur bank charges like the $12 sweep in daily fee or the $35 over withdrawn charge because I forgot to make the change for several weeks.
Automatic regular savings ensure your money goes where it needs to go on schedule and that it’s available when you need it. All banks have some type of automatic savings plan available. I do all of mine through ING Direct. If I ever need to change an amount because we changed our budget, all the information for my money transfer is in one place. If anything should happen to me, my husband will be able to pick up the finances with few issues.
Tomorrow: Save for Retirement
Barb is a mom of 5 kids who spends her day keeping track of socks, stuffed animals, library books, and a 4 year old when she isn’t writing about all the frugality, gardening, cooking, and reading she manages to fit in between the chaotic moments. She can be found at A Life in Balance, Frugal Local Kitchen, or on Twitter with daily doses of life in 140 characters or less.