We all want to save more money for a rainy day. Sometimes though, when money is in our checking account, we frivolously spend it without a second thought. Then, when a rainy day comes we have no savings.
Sometimes we need help with separating money that we spend for everyday use and money that we should be saving. If you want to learn how to start saving money without having to manually transfer it into your saving account, continue reading below.
Check With Your Employer For Automatic Deposits
Talking with your employer is the best first step to set up automatic deposits. Did you know that you can have a percentage of your paycheck deposited into a savings account each week while having the rest put into your checking account?
Putting part of your money into a savings account can keep you from using it. Out of sight, out of mind. Better yet, put it into a savings account that accrues interest for higher yields and faster results.
Use The Round-Up Method To Save Money
A new way to save money is the round-up method. To participate in the round-up method you will need a participating financial institution. The concept of this way of saving is simple. Let’s say you make a purchase for $3.85, the purchase would be rounded up to the nearest dollar. The $.15 that it would take to reach the next dollar amount would be put into your savings account.
The purchase would actually be $4.00, but since the difference would be put into your savings, you would not miss it. That is up to .99 per transaction. After a few purchases, you could already have a steady amount of money saved.
Keep in mind that these are apps that provide this service. You can’t do this with your regular brick-and-mortar bank.
Check Your Bank
You can reach out to your bank and ask them if they offer automatic bank transfers. If they do, you can set it up so that a certain amount of money goes into a savings account each week or month.
Most banks also offer the option of sending money to other banks. If you have your primary account as your checking, and your savings with another bank, it should be no trouble sending money between the two.
Things To Be Aware Of
There are a number of things to be aware of when setting up automated payments. Most of them relate to having sufficient funds in your account.
- Always make sure you have enough money in the bank to cover your purchases and the automatic deposit.
- Always ask your bank if there will be any fees associated with the automatic deposit.
- Don’t overstretch yourself so that you have too many deposits coming out of your account at once.
The Bottom Line
Sending money has never been easier. Technology has improved the world of banking tremendously. You no longer need to drive from one bank to the other to deposit money for savings.