The easiest and most effective way to save is automatically. Think about it: Saving automatically is the exact same way that millions of employees save through 401(k) and other retirement programs at work. So, using the same concept - that you can “set it and forget it” and adjust to money going directly into savings - would work for ANY savings goal, including saving for an emergency fund, homeownership, education, or even a vacation.

HOW TO SAVE AUTOMATICALLY

Automatic savings mean you have a process for saving at regular intervals, whether monthly, weekly, or daily.

If you want to save automatically, here are some suggestions:

• Split to Save. Instruct your employer to direct a certain amount from your paycheck each pay period and transfer it to a retirement or savings account (or both). Traditionally, you can set this up using your employer’s direct deposit, ask your HR representative for more details, and set this up today.
  
• Auto-Transfer. Have the bank transfer a fixed amount from your checking account to a savings or investment account every payday. We can help you set this up.
  
• Scheduled Transfer. Choose a day of the month or a regular interval, such as every two weeks, to transfer a set amount from your checking account to a savings account. This method works well for people with varying pay, such as freelancers and those working in the gig economy. Consider picking a lower dollar amount or a time of the month when many other automatic payments aren’t happening. We can help you set this up as well. 

If you cannot set up automatic transfers because you’re paid by a physical check, in cash, or currently unbanked? You can still make saving a consistent habit!

• Save your loose change. Put all the loose change from your pocket or purse into a jar daily, and don’t spend it. If that jar looks tempting, bring it to the bank and deposit it into a savings account with low to no fees. However, if you’ve got a big jar, there’s no harm in watching your automatic savings pile up literally!

WHY AUTOMATIC SAVINGS WORKS

Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 yearly and $3,000 after five years, plus compounded interest. Soon, you can cover many unexpected expenses without putting them on your credit card or taking out a high-cost loan.

I DON’T HAVE ENOUGH MONEY TO SAVE

If you’re still in the stage of your savings journey where you’re reducing debt (which is saving!), then visit our resources to help you pay down debt.

Remember, even while you’re actively reducing debt, everyone has the ability to start to save, even if it's a small amount. You can start with only a small amount, and you can save daily, weekly, or monthly. Over time, your deposits will add up. Even small amounts of savings can help you in the future.