Automating your savings is a great way to build your savings without worrying about it all the time.

Here are some steps you can take to automate your savings:

Set a savings goal

Determine how much money you want to save and for what purpose.

Be specific about what you are saving for, so you can determine the amount of money you will need to reach your goal. This could be anything from building an emergency fund to saving for a down payment on a house.

It can be hard to make a plan to achieve your financial goals if you’re not sure what those goals are.

Choose a savings account

Open a separate savings account for your automated savings. Look for an account with a competitive interest rate and low fees.

This helps keep your savings separate from your everyday spending. Also, it makes it easier to track your progress towards your savings goal.

Set up automatic transfers

Set up automatic transfers from your checking account to your savings account. You can do it through your bank’s online banking platform on a regular basis, such as weekly or monthly.

Many investment platforms also offer automated savings plans. These plans let you invest in a diversified portfolio of assets, including stocks and bonds. You won’t need to make manual investment decisions. It is advisable to research the fees associated with these automatic savings plans.

It is also important to understand the level of risk involved as these plans are designed for long-term savings. It’s crucial to be patient and not panic if the markets experience volatility in the short term.

Start small

If you’re not used to saving, start with a small amount. Increase this amount over time as you get more comfortable. Start by setting small, achievable savings goals. For example, aim to save $50 per month or 5% of your income. As you get more comfortable, increase your savings goal.

Make adjustments as needed

If your income or expenses change, adjust your automatic transfers. Life is full of unexpected events that can impact your income and expenses. So it’s essential to be flexible and adjust your savings plan as needed.

Re-evaluate your goals

If your income or expenses change, take some time to re-evaluate your savings goals.

• Are they still realistic and achievable?
• Do you need to adjust the timeline or the amount you’re saving each month?

Be honest with yourself and make adjustments as needed.

Look for opportunities to save more

Look for ways to save more money, if you’re able to reduce your expenses or increase your income. Consider putting any unexpected windfalls into your savings account. For example, a tax refund or a bonus.

If you have a workplace retirement plan, consider setting up automatic contributions to it. You may also want to consider a robo-advisor or investment account for more savings options.

Stay motivated

Adjusting your savings plan can be challenging. But it’s important to stay motivated and focused on your long-term financial goals. Remember why you started saving in the first place and keep your eye on the prize.