Post
Topic
Board Economics
Re: Automating your savings will help you save more
by
Silberman
on 15/04/2023, 20:40:55 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.

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.
I disagree with this, it is easier to save in this way that is true, but by relying on at external tool you are not developing the discipline which would naturally take you to do this, this means that as soon as you see that the amount you have saved is high enough your first instinct is going to be to spend it all, while those that saved that very same amount of money but by doing so out of their own will be able to resist those thoughts and keep their savings intact.