If there is one thing all finance experts can agree on, it is that having savings is a good thing. Even better if your savings is automated. This means that every time you get paid a portion of that money is automatically transferred to your savings account. There is no guesswork, nothing manual about it. It does not matter if you want to save that day or if you saw something on Tiktok Shop that you must have. That money will be transferred.
To have automatic payroll deductions for savings you can normally set that up with your employer. You decide the dollar amount or percentage you want transferred out of each paycheck to your savings account, and you provide your employer with the account information for your bank. It is a simple way to start saving money.
It is a simple process but you have to decide to start. It becomes a habit you do not have to think about. You do not even see that money in your paycheck before it gets transferred to your savings. There is no temptation to think you have that money to spend. Before you know it, your savings will start growing however quickly or slowly you set the rate.
There are many options available for saving money. A standard high yield savings account at your bank is the most common option. In addition to a savings account you may also open a retirement account through your employer or by yourself. And aside from the automatic payroll deduction there are also other tools for automated saving. One example is round up savings where for each purchase made with a card, the bank will round up to the nearest dollar and transfer the difference to your savings. If you spend $3.50 on coffee it will round up to $4.00, with the extra $0.50 being saved.
MMM tip: Do you have a savings account? If not open one with your current bank.
Until next week,
Dariene
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Disclaimer: This newsletter is for informational and educational purposes only and should not be considered financial, investment, tax, or legal advice. I am not a licensed financial advisor. Please consult a qualified professional before making any financial decisions.
