Looking to build your savings account effortlessly? There's no easier way than to automate your savings account. This Wise Spend Wednesday we touch on building your savings account!
You may have just read our latest Frugal Friday post on stashing away cash, so this will come as no surprise as an alternative way to building your savings account.
How do I automate my savings?
Contact your HR representative and fill out a form with your savings account number, as an additional direct deposit. From there, designate a certain dollar amount from your paycheck each pay period. It's essentially just another "deduction" from your paycheck and you probably won't even miss it. Automatically depositing $20 every 2 weeks adds up to $520 in a year. If you want to do $20 each week, ($40/paycheck) that's $1,040 in a year! That's a nice little cash cushion you build up without realizing it.
You can also set up an automatic transfer every 2 weeks with your bank.
Sounds easy. Can I deposit myself?
Of course! Even if you don't have it automatically deducted from your paycheck, you can still count it as another "bill" to pay each paycheck. I'm sure you've heard from several financial advisors to make sure and pay yourself first out of every paycheck. This is a great habit to get into, if you can afford to do so.
If you're paid bi-weekly, at least twice a year, you will end up with an extra paycheck that month. It definitely doesn't hurt to put that extra check into savings to help grow your account even more.
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