Quote from: odunybiz on April 09, 2023, 05:35:35 PM

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.

That is true. Automating your savings can help you save more it is a good strategy specially to people who do not have control in their spending on their wants. Automating saving is good for people who have extra money on their salary because if you have a low salary and your salary is just enough to cover up your daily expenses, it would be a bit harder. Not everyone have extra fund on their salaries. But to be able to automate savings you have to do side jobs so that you can have extra income to be able to automate your savings. I had done that in the past and i know how it feels if your salary is just enough to cover up expenses. It is hard to save if you do not have extra in your salary.

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