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Why You Need An Automated Savings Plan

If you’re not disciplined you might find it difficult to save money. Having to physically deposit money on a particular account might be a bit of an inconvenience and a challenge. By having an automated savings plan, you can save yourself those hassles and make saving a priority.

Automated savings can be initiated via your employer where they send a portion of your salary to a specific account. This can also be done by your bank or credit union where they might move a portion of your funds into a special savings account. If you lack  discipline, I would recommend using the bank or credit union debit option.

I find automated savings to be very convenient. Not having to trek from bank to bank is a blessing. I remember a time (before I had an automated savings plan) I had to go to another bank to make a deposit. The bank was so out of the way that I never made it there and I spent the money. That was enough motivation to start the process and I haven’t looked back since.

I even convinced a friend to save via automated savings. She had been slacking off on her savings and did not have the discipline to save properly. I went with her to open a savings account and when she gets paid, her savings are sent directly to her account. She does not have to go to the bank and she can monitor her account online.,

Something else that I’ve realised about saving in this way is that you learn to function without the money. You never get to see it – it’s almost forgotten. I’ve reached the stage where I include that savings as a line item in my budget. This works because I treat it like a bill and I know that I can not afford to miss a payment.

You can use the automated savings plan to save for something in particular. Some people use the money for their children’s and their education; a down payment on a car; retirement savings or travel. I have so many things that I would like to save for, but until I make up m mind, I’m going to keep that automated savings plan going.