Making the decision to arrange automatic saving takes some of the hard work out of steady saving deposits. Here are some tips to get started:
- Every month, have your bank or credit union transfer a fixed amount (like $25) from your checking account to a savings or investment account. Talk to your local bank or credit union to set this up.
- Every pay period, have your employer deduct a certain amount from your paycheck and transfer it to a savings account. Ask your HR representative for more details.
- Set up automatic payments towards your debt by providing your checking account information to your loan provider to ensure that the payments are on time and in full. Enrolling in automatic payments may even qualify you for a small interest rate deduction with some types of loans and providers, such as some student loans.
If your employer offers a retirement account, sign up and put in at least the minimum contribution to receive any matches they may offer. Ask your HR representative for more details.
- If your employer does not offer a retirement account, start saving with myRA, a new retirement savings account from the United States Department of the Treasury. The account features no cost or fees, no complicated investment options and no risk of losing money.
If you would like additional information about automatic saving, one of our financial coaches can help you create a long term savings plan.