6 Simple Methods to Automate Your Savings Plan

We all need a perfect savings plan that frees us from the stress about the future, don’t we? However, that ‘perfection’ is not accessible to everyone. Let us have a look at why you should consider automating your savings plan and how it can help.

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Sometimes, the technicalities,the paperwork, or the speculation problems, the morale to save get killed, and we end up in misery.

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Another restraining factor is the complexity of savings plans that are provided in the markets.

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The risk averseness in some of us holds our hand back when we think of investing.

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And when we finally decide on a plan,  the excess technicalities of online savings platforms play a big no. 

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How easy life would have been without the hassles and uncertainties of saving plans, no? Why not automate it then? Yes, you heard that right. 

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Automate your savings plan.

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In layman’s words, the term ‘automatization’ would refer to the development of a skill to the extent that, over time, there feels no need to be conscious of its happening, i.e., it becomes an integral part of the routine and needs no regular direction for its execution.

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Connecting these dots with ‘saving’, here we are referring to the execution of your savings plan, without needing you to execute it. A whole loop of words! Isn’t it? 

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To understand the goal better, refer to the following points and enlighten your brain cells with all that you need about “automatization of savings plan”: 

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1. Reserve a part of your monthly/quarterly/annual income specifically for savings

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First things first, to finally kick start your saving journey, you must start by automating your basic financial account.

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‍Every time you get your salary, the first thing that is to be done is to set aside a part of that income into your savings account. 

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The best way to do this is to first decide the sum that you wish to set aside for savings.

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Next, you’ll need to specify this either to the employer who is transferring your salary and ask if they accept multiple account transactions or just simply let your bank handle this for you. 

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This way, you won't have to take on the burden of carrying out the transaction by yourself or be lenient regarding the amount that will go into savings.

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‍Your savings will gradually grow even without you knowing it. In addition to this, since you will get to spend only the part of income that is not going into the savings account,  you won’t have to  worry about spending it. You can thus carry out your other expenditures with free mind.  

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2. Automate your regular bills  

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Another way of ‘stress-free transactions is to automate the regular bills, like electricity bill, water bill, subscriptions, etc.

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‍The delayed clearance of such bills often put a burden on your pocket through the imposition of fines.

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Even though it might be a very small amount, when it all accumulates, it surely is a hefty price that you pay.

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Hence, it is better to avoid such a casual loss of your hard earned money and instead save the last penny. 

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There are many online platforms that provide the facility of automating such transactions, taking away all your worries.

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Another way is to let your bank be the pioneer and carry out these transactions on your behalf on time.

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This way, you will stay updated on your current active account and spend accordingly. 

3. Maintain consistency in your savings deposits

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Consistent efforts to save always pay well. With even small sums but ‘consistent’ small sums, large saving goals can be easily achieved.

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‍The amount of income that you have automated in the first step to be transitioned into your savings account, will gradually, over time, grow bigger and even faster if the boon of compound interest comes into play.

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You can even carry out some other investments too, like stocks, bonds, government securities, treasury bills, etc. and grow your money. 

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Some smart savings apps like Jar have features to even save a small change! With a handful of such amazing tools and consistent efforts, anyone’s savings plans will work out well.

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4. Law of resistance

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The automatization of savings will help you save even in your sleep.

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The reason being the fact your mind will automatically carry out its ‘law of resistance’ and so you will naturally not want to use that account for your day-to-day spendings.

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In the long run, just this small habit will help you make your money work for you.

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5. Online savings automation tools or apps like Jar

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As mentioned before, there are plenty of amazing online tools and apps that kickstart your savings journey and even let you invest.

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Like Jar, that helps you in saving your money in the form of digital gold. You can start growing your money with just your spare change.

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You can also set up a daily amount which will be deducted and saved in Digital Gold automatically. Let Jar automate your savings plan and invest in digital gold.

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‍The value of your investment will rise along with the rise in the price of gold. If you don't have the funds to carry out huge investments, your spare change can do wonders for you! Gradually, your savings will grow and your investments will gain more value. 

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6. Track the progress

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Another important step in your savings and investment plan is to keep a regular track of your expenditures and savings.

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‍By this, we don’t mean that you will have to constantly check your savings account and be too confident about your savings and start to spend recklessly.

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This constant check is to be done in order to track your long term savings plan. 

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While short term goals will gradually grow, you can use the catalyst of compound interest and help them grow at a faster pace.

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With automatic compounding and a savings tracker, you will be more aware of your finances and carry out transactions carefully. 

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Don’t miss out : How you can get automatic rewards from automatic savings.

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These tips and tricks will help you save for a better future and ease the burden of carrying out all the transactions on your own.

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With automation of savings, one can save even while asleep, and there is no additional command, direction or effort needed from your side.

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Therefore, follow these suggestions and grow your savings.