3 Reasons why you should automate your savings

However, it can be difficult to set aside money consistently, which is where automated saving comes in. Automated saving is a great financial tool to make saving effortless and effective so that you can reach your goals faster.

Here’s a closer look at what automated saving is and why you should consider it.

What is automated saving?

Automating your savings is the process of telling your bank to make set amount transfers from your (transactional/cheque) account into your savings account at a specific time via a direct deposit.

Why automate your savings?

Creating savings doesn’t ‘just happen’: it requires self-discipline to consistently put money aside. Setting up automated saving makes the process of regularly saving more convenient, helping you prioritise saving before your expenses hit and reducing the time and effort involved in the process.

Here’s what automated saving can help you achieve:

• Meet your savings goals
  From building emergency savings to putting away money for a holiday, renovation or education, by automating the process of contributing to this goal, you’ll be able to meet it more easily because you’ll be consistently working towards it.
  
  You’ll be able to prioritise the money, avoid skipping months and have space for it in your budget so that you won’t be tempted to spend it, but also be able to manage your cash flow.
• Build a savings habit
  By continually putting money away, you start building a savings habit, which helps you focus your money behaviour on your goal, but the consistency of automatically saving a set amount every month means you’ll stick to your goal and ensures you stay on track without noticing too much, and before you know it, you’ll have reached your goal.
• Benefit from compound interest
  One of the biggest advantages of saving money is that the more your money grows, the more interest you can earn on it. When your savings are on autopilot, you guarantee that not only the amount you’re putting away increases but also the compounding effects increase the rate at which your money grows.

How to automate your savings

Learn how to automate your savings quickly and easily with the scheduled payments add-on on our Banking App.

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_{Disclaimer: This article is solely intended for information. It does not constitute financial, tax or investment advice or recommendation. Please speak to a financial advisor or registered financial professional before making any financial decision(s).}

_{Standard Bank, its subsidiaries or holding company, or any subsidiary of the holding company and all of its subsidiaries make no warranties or representations (implied or otherwise) as to the accuracy, completeness or fitness for purpose of the information provided in this article or that it is free from errors or omissions.}