Automating savings can help you get to your goal. You can set up regular deposits or transfers into your savings account so you can save money before spending it. For example, instead of waiting to put money into your savings until after you pay your bills every month, automatic transfers allow you to save money first. There are two ways to do this:
- Use direct deposit to help you save. Most direct deposit programs allow you to split your paycheck so a portion goes directly into your savings account.
- Schedule automatic transfers. These let you regularly transfer money to your savings account from another eligible account such as your checking account.
You can adjust your transfers or deposits any time you want, but if you stay the course, you could see big rewards over time. For example, if you save $58 a week, in one year you would have $3,000 saved, which could be enough for a down payment on a car, a home repair or a vacation.
Tip: Make sure to schedule your transfers when you know you have enough money in the originating account, such as after each payday.