Spending money can be fun, but the short-term gratification you feel from it could hurt your future finances. We get it: saving, investing, and sticking to a budget takes discipline, but you can make things easier with a little digital automation.
What’s automation? It’s saving more with less effort. It’s automatically putting away money for your financial goals, like retirement, paying off bills, or taking a big trip. It’s working smarter and not harder, and not leaving things to chance and memory.
Here’s how to automate five financial best practices.
Every paycheck presents an opportunity: to save or to spend? Make this a nonchoice by setting up direct deposit and autodraft.
Often, you can have a percentage of your salary automatically deposited into a savings account each pay period. This way, you won’t forget about—or procrastinate on—manually transferring some money into your savings.
If your employer doesn’t allow allocating your direct deposit across multiple bank accounts, connect with your banker. Tell them the dates you get paid and ask for a portion of your pay to be transferred into a savings account the next day.
Your money will be saved before you even know it’s missing.
If you’re ready to put all this into practice, don’t get overwhelmed. Make a goal (and an auto-reminder) to set up one financial automation per week over the next five weeks.
Automating your simpler financial habits like this can reduce the stress of managing your money, and you’ll hopefully feel more in control.
Over time, you might just start to see a slow, steady progression toward your goals, all quietly happening in the background.
1 “401(k) Fast Facts: January 2019.” American Benefits Council, January 2019.
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