I am excited to be a contributor in The Budget Mama’s 21 Days to a Better Budget series.
Yesterday I shared Why You Should Automate Your Savings Plan.
It seems bold to say that making savings automatic can save you thousands of dollars, but it most definitely can. Here is my experience from two loans we paid off.
We had a student loan with a monthly payment of approximately $85. This was withdrawn automatically from our checking account every month. We decided to pay off the student loan with a portion of our savings and had every intention to put the monthly $85 into a savings account for our daughters’ schooling. We paid off the loan…and did nothing else.
That was 3 years ago. Because we didn’t immediately set up an account for saving the $85 we ended up spending the money each month. We missed out on over $3,000 in our daughters’ education savings accounts! By skipping the simple step of making it automatic, we ended up spending the $85 each month instead of saving it.
A year ago, we paid off a second student loan. We didn’t make the same mistake again. We paid off the loan and immediately set up a monthly recurring transfer to the Education Savings account we set up. Within a year, we now have an additional $1,380 in the account because we set up the automatic payment.
The Capital One 360 account currently offers a $25 Bonus on new accounts.
Make the decision to save, but then go the next step and make it automatic. If the payment is not automatic, it’s much easier to think: This month is tight, I will save next month.
Read the rest of the post here!
Check out the Automatic Savings Resource Page for a free Automatic Savings Worksheet.
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Stop by to see where I link-up my posts each week: Link-Up List