Put Your Savings on Auto-Pilot
- Saving & Investing
- Adapted from GreenPath Financial Wellness
Saving money may not feel like your strong suit. It’s easy to get off track and save less than you intended when you’re not consistently saving a portion of every paycheck.
But that doesn’t mean you can’t get ahead of the savings game. One of the easiest and most effective strategies is to automate your finances. This allows you to save toward your long-term goals or build up an emergency fund without having to think about it on a daily basis.
3 Ways to Automate
Start by deciding how much you can save every month. If you aren’t sure, make a quick list of your monthly bills and expenses and see what’s left over. Even if you can only save a small amount, it’s worth doing. Then:
1. Set up an automatic transfer once a month.
Every month, have your financial institution transfer a fixed amount (like $25, $50 or $100) from your checking account to a savings or investment account. Want to do it with Frontwave but not sure how? Give our Member Solution Center a buzz and we’d be happy to walk you through it.
2. Direct deposit from your paycheck to savings.
Every pay period, have your employer deduct a certain amount from your paycheck and deposit it in a savings account. You’ll never even know it’s gone. Talk to your HR person or whoever handles payroll to see how you can set this up.
3. Max out any retirement benefit your company offers.
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 person for more info.
Save Money on Debt — Automatically
Interest and fees on loans and credit cards can really eat into the amount you have available to save. To maximize your savings potential:
1. Never pay a late fee again.
Set up automatic payments toward your debt by providing your checking account information to your loan provider to ensure that the payments are on time and in full.
2. Pay down your debt as fast as (reasonably) possible.
Maximize your budget for paying off debt faster, and use automatic payments to help you stick to your schedule. Round up your payments to accelerate your progress. The faster you pay down debt, the more money you’ll save on interest and fees.
3. Check for interest rate savings.
Find out if enrolling in automatic payments qualifies you for a small interest rate reduction with your loan provider(s). Frontwave offers this on auto loans, as do some student loan providers.
4. Consider a debt payoff plan.
If you look at your budget and find that you’re spending all your extra money on debt, you might want to make a debt payoff plan. Talking to a financial counselor will help you get your whole financial picture in focus and explore the different options available to you.
As a Frontwave Member, you’re entitled to free financial counseling and education from our partners at GreenPath. Their professional, caring financial counselors will work with you to assess your situation, explain the options or solutions available, and help you create a spending plan to meet your goals. It’s free, confidential, and no pressure.
Frontwave is proud to partner with GreenPath to provide our Members with financial wellness education, counseling, and debt management services.