Post
Topic
Board Economics
Re: Automating your savings will help you save more
by
Gyfts
on 15/04/2023, 06:58:55 UTC
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.

I would suggest anyone who takes automatic deductions from their income and put it into a savings account look into transferring those funds into an investment account unless you need short term liquidity. If you're holding fiat currency, then note any and all funds that remain stagnant and outside of investment accounts are losing purchasing power every day that it sits there.

If you keep those funds around for 20-30 years, you will have lost minimum 2% year over year.

You don't necessarily need to automate this process unless you're having budget problems, though. Seems to me it'd make more sense to set aside funds month by month depending on what your expenses are for that period.