One of the simplest and most effective tools you can use for almost any saving goal is an automatic savings plan. Automatic saving programs generally come in two forms – either your employer deducts a certain amount from each paycheck and deposits it into a specific account or your financial institution moves a certain amount from your checking account into a savings account on a regular basis. Either way, these automatic transfers add a discipline to your saving. Once people use them, they often find they do not even notice the smaller amount they have to spend each month.
Putting automatic savings plans to work
Taking actions to regularly save or transfer money can be easily delayed or forgotten. Using a little bit of automation by having your financial institution do it for you can make the process easier and more effective.