Whether you’re saving to buy a home, setting aside cash for a rainy day fund, or even planning for a big vacation, the easiest and most effective way to save is automatically.
Think about it… or actually, you don’t really have to. This method of saving adopts the “set it and forget it” mindset, the same you might save for retirement through a 401(k) program at work. Whether it’s $10 or $100 a week, setting aside money to go directly to a savings account is sure to advance any savings goal.
How do you start saving automatically? Simply find a process to save at regular intervals and put it into place. Here are two ways to save put your saving on autopilot:
- Split to save: Work with your employer to set aside a certain amount from each paycheck to be deposited directly into a savings account. For example, have 90% of each paycheck go towards checking and the remaining 10% deposited in savings.
- Auto-transfer: Instruct your bank to transfer a fixed amount from your checking account to your savings account on a schedule that works for you. Indicate how often you want the transfer, such as once a month or every payday. If your income varies, find a time of the month when other automatic payments for bills aren’t happening.
Watching these automatic deposits add up is a reliable way to meet your goal and build financial resilience. Soon, you’ll be able to cover unexpected expenses without relying on a credit card or a high-cost loan.
If you’re in the stage of reducing debt, continue to do so as a priority and save when you can. Most importantly, don’t be ashamed of only being able to save a very small amount. Do what you can with what you have, or “start small, think big” – saving is something you won’t regret.
Penn Community Bank offers a variety of savings accounts to meet your needs. Whether saving for the long term or short term, we make it simple to save, and your money is available whenever you need it.
This blog is part of Penn Community Bank’s celebration of America Saves Week – an annual celebration and call to action for everyday Americans to commit to saving successfully. Together with thousands of participating financial institutions and community organizations, we encourage local communities to do a wellness check on their finances and make a plan to achieve better financial stability.