Why You Need to Set Up Auto-Deposit In Your Savings

What is it?

This is a feature available through a banking institution or even your workplace in some situations. It is an automatic withdraw or deposit that you set up one-time and it will do it for you in the future without you having to do anything or worry about it.

This can be an automatic deposit from your checking account into a savings account or an automatic withdraw from your paycheck into a savings account.

Who should do it?

This is for the person who is too busy in life or needs the money they’re saving out of sight out of mind. This is money that you never really see because it’s done automatically for you every week, bi-weekly or monthly.

Even if you do like to have manual control of your money having automatic deposits is never a bad idea. It ensures that a specific amount each month is being deposited and saved for you without you having to stress. This adds up FAST!

Tip: I have an automatic deposit setup bi-weekly into my savings account and then weekly or monthly I will add to my savings account. Depending on the week or month and where my financial standing is. This helps when unexpected purchases or life events happen I have cash on hand if needed but for the months where everything went to plan (and budget) then I can put the excess cash into my savings.

Why should I do it?

This is almost seen as a safety net for yourself. Money is being deposited and allocated responsibly without you having to worry about it or do anything. Why would you not do it?!

Does it work?

Yes! Money that is out of sight and out mind will grow on its own, never needing anything from you. Setting up weekly, bi-weekly or monthly auto-deposits will make your life easier and in 6 months from now when you checking your savings balance you will be thanking yourself when you did that.

Tip: Weekly Savings Deposits - Set a goal for yourself of what you're looking to save a month and then break this down. When you break it down the number seems less intimidating. If you want to save $400/month then this means $100/week. Deposit the $100 each week and find where you can cut other unnecessary spending that you do during the week.  It will make it seem more realistic. For example, every Sunday you can input the amount you need to input into your savings for that week and watch it grow by $400 each month.