Automating your savings will help you save more

[Supreemo]

this financial plan is applicable if you have average to high income, but it doesn't mean low income couldn't afford to have this kind of financial planning. base on my experience, when you are someone who doesn't have a decent paying job, you'll have to find alternative source of income to supplement your savings and other investments. during those times I wanted to save money, at the same time i don't want deduct something from my wage since it is low enough and only could sustain me for a month along with additional expenses and bills to pay, but I want to have investments and savings, so what i did is i find another source of income to be able to achieve my plans. if someone asks me if it's hard, indeed it is hard, time management alone couldn't help much if you didn't have enough meals to give you energy, but all those grinds are worth it, you will learn more being on those times than overcoming the struggle.

[BVeyron]

As humans, we tend to have a need for immediate satisfaction. These needs keep increasing on dialy basis, if one decide to go by all these needs, one may end up without a saving. Most time we are faced with a decision like whether to spend our money on our daily needs or to save them. Here, we may likely to be biased toward our present selves, so we're likely to make the choice that will benefit us most at that moment which mostly will be buying our daily needs. However, we can overcome present bias by taking away the ability to choose between saving and spending altogether. This is where automating your savings comes in.

What do I mean by automatic saving? Automatic savings is a type of personal savings system in which the plan contributor automatically deposits a fixed amount of funds at specified intervals into their account. The typical structure of this type is an automatic transfer from an individual's bank account into a savings or investment account.

When you automate, you eliminate a decision – to save or not to save. Once you decide to set up auto-save and go through the initial process, that’s all. You keep saving at interval without a need to make a decision on either to save or not. With this one savings keep accumulating with time till one have a reasonable amount.

With automatic savings, ones monthly salary becomes: Salary- Automatic savings amount. With this, one will only calculate is daily needs on the remaining amount rather than calculating on all it's salary.

CONCLUSION
Saving money isn't something easy, it comes with determination and self-discipline but with automatic saving one can easily set his/her saving amount at interval.

The problem of all the savings and investments is that people never get what they want: inflation and income fluctuations diminish all the savings and investments of people with not much money. The economy is highly dependent on individual psychology, but classic economy still tries to unify the scale of any process in USD or other fiats, while this is completely failed way to calculate the effectiveness of any economic process.

[Ndabagi01]

I partially agree with your statement of automating your savings to bridge the thought of whether to save or not to save. In fact, it is a great idea for people who are having difficulty deciding what to take out of their budget to save for future use or in an emergency.

Why I don't entirely agree with the concept, some wage earners in some countries don't even get enough to last them a month, so introducing the concept of automatic savings will only make life more difficult for them with what they earn if some percentage of money is saved. Automatic savings will benefit those with a monthly income ranging from average to high.

[Smartprofit]

Yes, I also fully automated the process of accumulating money. 

Twice a month my salary for my main job is transferred to my bank card.  I wrote a corresponding application to a commercial bank and 25 percent of the money received is automatically transferred to my depersonalized metal account (opened in the same commercial bank). 

An impersonal metal account is a bank account denominated not in fiat currency, but in grams of precious metals (gold, silver, platinum and palladium). 

I have two depersonalized metal accounts open - in gold and palladium).  The price of precious metals rises over time and usually outpaces inflation. 

In any case, I save (rather than spend this money).

[virasisog]

If we are the type of person who is having a hard time saving and controlling ourselves from spending, then automated deductions will be a big help. We should know that saving is too important for our future and if we can't apply it manually then automated services are necessary but as much as possible, we have to control and discipline ourselves so we would know the value and importance of saving. It should actually be a part of our routine.

[slapper]

I have serious doubts about the efficacy of automatic savings plans. Even though I agree that bias in the here and now is an issue that needs fixing, I'm not sure that technology is the answer. Do we risk losing our ability to make good choices in order to secure our financial future?

Also, I'm concerned that having funds put away automatically may give people a false sense of security. Our wasteful spending habits are the real issue here, but we're ignoring them. Saving money involves willpower and self-control; eliminating the need for these qualities through automation is a band-aid solution.

Academically, it's important to acknowledge that automatic savings may not be suitable for many people. It's a major choice that should be given lots of thought and deliberately deliberated over. The use of machinery alone is not an option.

[19Nov16]

If we work in an office and have regular income then it's time to make automatic deductions or transfers for investments, for example some investment products can make it easy for us to be automatically deducted every month so that it will automatically make our future better.

[TalkativeCoin]

I've seen a couple of legacy banks/credit card companies have something like that, where they round up each of your purchases to a complete value, and the excess goes into a savings account.

For example, the sale total is $14,33, the next round number is $15, and the $0,67 goes into a savings account. If you have, let's say 2-3 purchase daily, that can amount from $1 to $2 daily, which is decent.

[Smartprofit]

I can't help but be skeptical about the concept of automated savings. While it's true that present bias is a real problem that needs a solution, I'm not entirely convinced that automation is the answer. Are we sacrificing our decision-making abilities in exchange for financial stability?

Moreover, I'm worried that automated savings can create a false sense of security. We're not addressing the root of the problem, which is our spending habits. It takes self-discipline and determination to save money, and by automating it, we're not addressing the root of the problem.

On an academic level, it's crucial to recognize that automated savings may not work for everyone. It's a serious decision that requires careful consideration and planning. We can't just rely on machines to do everything for us.

I would still advise you to use automatic means to create savings. 

In fact, you have nothing to lose by doing so. 

For example, you can always withdraw money from an impersonal metal account.  To do this, you just need to come with a passport to the bank.  You can withdraw part of the funds from your account by receiving fiat money in your hands. 

With this money you can buy Bitcoin (if you think that the first cryptocurrency will grow in price in the near future).

[xSkylarx]

This is my first time hearing this, and it is ideal for those who lack self-discipline and are unable to save themselves. But my question is: if there are really times that we are caught off guard, how do we tackle this? This is only good for those who have enough salary but spend too much on wants, but whose income is just enough to make it difficult but still possible.

[inthelongrun]

Honestly, It really surprises me why people have difficulty saving money for their future and emergency purposes. Maybe I can understand those people that are earning only enough for their regular expenses although these types of people might belong to the same type of people having difficulty saving knowing they started their own family without enough income and savings.

When I got my first job, someone even told me that I should take a loan and then deposit it in a bank so that I can have my own savings. And I knew some people are doing this and their reason, they cannot save when their whole salaries are given to them in full. They didn't even realize that the interest on bank loans is higher than the interest on deposits.

[cydrix]

I agree with the OP. Saving money in today's world can be challenging due to inflation. The rising prices of basic necessities make it difficult to set aside money for savings. Meanwhile, monthly salaries do not always increase to keep up with inflation. With fiat currency losing value, the struggle to save is real unless one chooses to prioritize future investments over basic needs.

I believe in the $3 rule theory by Daymond John

Daymond John's $3 rule theory suggests allocating the first dollar towards necessities, the second towards investments, and the third towards wants. By exercising discipline and limiting spending on wants, you can prioritize savings and wealth building. This approach can be a valuable strategy for achieving long term financial stability.

[Fortify]

As humans, we tend to have a need for immediate satisfaction. These needs keep increasing on dialy basis, if one decide to go by all these needs, one may end up without a saving. Most time we are faced with a decision like whether to spend our money on our daily needs or to save them. Here, we may likely to be biased toward our present selves, so we're likely to make the choice that will benefit us most at that moment which mostly will be buying our daily needs. However, we can overcome present bias by taking away the ability to choose between saving and spending altogether. This is where automating your savings comes in.

What do I mean by automatic saving? Automatic savings is a type of personal savings system in which the plan contributor automatically deposits a fixed amount of funds at specified intervals into their account. The typical structure of this type is an automatic transfer from an individual's bank account into a savings or investment account.

When you automate, you eliminate a decision – to save or not to save. Once you decide to set up auto-save and go through the initial process, that’s all. You keep saving at interval without a need to make a decision on either to save or not. With this one savings keep accumulating with time till one have a reasonable amount.

With automatic savings, ones monthly salary becomes: Salary- Automatic savings amount. With this, one will only calculate is daily needs on the remaining amount rather than calculating on all it's salary.

CONCLUSION
Saving money isn't something easy, it comes with determination and self-discipline but with automatic saving one can easily set his/her saving amount at interval.

It does take a lot of self control and a whole change in mindset to switch from spending every penny you earn each month (plus extra that puts you into debt!), over to putting money away and not touching it while it grows. The trouble with savings is that you get a relatively small return, but you should maybe have at least 3 months of cash in such an account readily available. The really big step that most people never take beyond a pension, is learning how to invest. Not in individual companies, but via index funds which own a proportion of certain companies - saving massive amounts on trading fees and also allowing you to greatly diversify your risk. However you also need to be aware that dips and peaks are natural flows, of the economy if you don't have the courage to stick through the dips you should avoid it.

[Sim_card]

Automated savings,is the best for salary earners and for daily businesses but not for a poor man who hardly eat two square meal. This was the strategy that my elder brother was using,when he was running his business. He keeps a certain amount daily in his account for one year,which at the end of the year,he will withdraw his accumulated savings and use it to achieve something in the beginning of the next year.
It is a good strategy to secure your old age if you don't touch the money for a very long period of time. Let me say maybe 10-15yrs interval. As for this present time,I will advice that bitcoin should be the best option for automated savings and not fiat. If you keep on piling up your fiat currency till 10yrs time it will depreciate and might be a waste of time and resources, but if you put it into bitcoin, mate,you will be happy after checking your portfolio in 10yrs time. Inflation is a big challenge to fiat currency.
Gracias.

[Davian144]

If we work in an office and have regular income then it's time to make automatic deductions or transfers for investments, for example some investment products can make it easy for us to be automatically deducted every month so that it will automatically make our future better.

As long as the automatic deduction doesn't interfere with our lives, it won't be a problem to continue doing it. But every investment at this time in any product still has to be studied first, so that the potential for future profits can be slightly guaranteed because the guarantee of profit in all investments is always uncertain, so you don't have to always use an automatic cutting method if it's a manual cutting method. in every month is still good enough to run.

[mvdheuvel1983]

 Automatic saving in reality is this - There's an app that I downloaded from the Google play store it is available in my country and duly registered. It is created by one of these Fintech companies.
This app helps you to plan financially, save and invest.
It has been my go to app for the past 2 years. I sent a daily amount for withdrawal to the safe box on the app and it does it at 5 am everyday. I can increase or decrease the amount it depends on what I want. This to me is the best automatic saving. I do not need to worry about over spending or underspending because I already have it covered.
You are motivated to keep saving and saving and it helps to imbibe a saving habit.
This is a typical example of automatic saving.

[Twentyonepaylots]

Automated savings,is the best for salary earners and for daily businesses but not for a poor man who hardly eat two square meal. This was the strategy that my elder brother was using,when he was running his business. He keeps a certain amount daily in his account for one year,which at the end of the year,he will withdraw his accumulated savings and use it to achieve something in the beginning of the next year.
It is a good strategy to secure your old age if you don't touch the money for a very long period of time. Let me say maybe 10-15yrs interval. As for this present time,I will advice that bitcoin should be the best option for automated savings and not fiat. If you keep on piling up your fiat currency till 10yrs time it will depreciate and might be a waste of time and resources, but if you put it into bitcoin, mate,you will be happy after checking your portfolio in 10yrs time. Inflation is a big challenge to fiat currency.
Gracias.

It is right that it is not applicable to all. I know that in todays time that our economy is not doing well, it is nearly impossible for minimum wage earner to make part of their salary be dedicated for saving. But, if you are capable enough, I know that combined with better financial management would ascertain you of the habit of saving.

If we work in an office and have regular income then it's time to make automatic deductions or transfers for investments, for example some investment products can make it easy for us to be automatically deducted every month so that it will automatically make our future better.

As long as the automatic deduction doesn't interfere with our lives, it won't be a problem to continue doing it. But every investment at this time in any product still has to be studied first, so that the potential for future profits can be slightly guaranteed because the guarantee of profit in all investments is always uncertain, so you don't have to always use an automatic cutting method if it's a manual cutting method. in every month is still good enough to run.

I agree, just do this if you know and already planned out your financial obligations. Always check if you can really afford to use this strategy, Overall, it is really a good idea since most of the financial advisors that I see online giving advice regarding saving is to first allocate saving money and then budget the rest. Trying to do this would ensure that you are capable of saving that part of your money. I can see the potential in these automated saving system as you would probably not think about that part of your money as a saving since it is automatically deducted. Let's just see how smooth these automation since it is still prone to issues.

[Findingnemo]

It will not work for long term because one who maintain financial discipline and follow their 70:30 or whatever they decided to save will save it no matter what so since we are talking about the people who doesn't have such discipline will simply use the savings for something they wanted over time that is what immediate gratification. To achieve delayed gratification one must go through most difficult stage of their life then they will know the significance of money and why they need to save it instead of spending it some something that is not really beneficial for them.

[ethereumhunter]

I used the system several years ago. So when I get a salary from the office that goes straight to my bank account, some money is sent directly to my other bank account, and the amount is fixed every month. It helps me to be able to collect some money in one year so I don't have to bother saving every month.

But now I don't work in an office anymore so automatically, no savings are sent directly to my other bank accounts. But I always try to save the same amount of money every month and I also try to save bitcoin every week so this helps me to have two kinds of savings. And indeed, this requires good determination and self-discipline because we do things routinely.

[cryptoknightt]

It will be very useful for people who have difficulty managing their finances, because sometimes it is difficult for us to calculate expenses and do not consider other things in these expenses, with automatic savings, at least if our money runs out we still have money for emergencies without having to look for a loan