The Benefits of Automating Savings for Beginners

Introduction to Automated Savings for Beginners

Are you new to automated savings and wondering if it’s right for you? Automated savings is a great way to save money and reach your financial goals. With automated savings, you can set up your account to deduct a certain amount from each paycheck and place the funds into a savings account. This way, you’re saving money without having to think about it—which makes it easier to build a healthy savings account with little effort. Let’s take a look at why you should consider automated savings and some of the top benefits.

What is Automated Savings?

Automated savings involves setting up a pre-authorized transfer from your bank account or a payroll deduction from your employer to a savings account. These transfers happen automatically without you having to take any action on your part. Automated savings can help you stay on top of your finances by enabling you to save a pre-determined amount of money from each paycheck.

Benefits of Automated Savings for Beginners

  • Eliminates the Stress of Decision-Making: When you set up a regular savings plan with automated savings, you don’t need to worry about if or when you’ll be able to save money. Instead, you can relax knowing that your savings will be taken care of, and you don’t have to worry about making decisions or take the time to manually transfer money into your savings account.
  • Helps you Develop Healthy Money Habits: The more you practice good savings habits, the more automatic they become. By consistently setting up automated transfers, you are training yourself to save instead of spending. And because these transfers are recurring, you’ll become accustomed to living on less, which is a key factor in becoming debt-free and achieving financial security.
  • Motivates Long-Term Savings: Automated savings can help encourage you to save for both short-term and long-term goals. For example, you can set up a different savings account for each goal, or the same one if you prefer, and have the money automatically added to it each paycheck. You may even set up a recurring transfer on the same schedule as an upcoming goal, to make saving easier.
  • Offers Financial Support System: If you’re just starting out, automated savings can provide a secure foundation for your financial future. With regular, recurring transfers, you won’t have to worry about missing out on opportunities to save. Knowing that you have a secure financial support system can also help relieve stress and motivate you to save for the future.
  • Reduces Temptation to Spend: One of the biggest challenges for beginners when trying to save is constantly having to make the decision to put money aside or spending it. Automated savings helps eliminate this temptation. Instead of having to rely on your willpower, the automated transfer takes place regardless of if you’re feeling tempted or not, ensuring that you stay on track.

Tips on Automated Savings for Beginners

If you’re just starting to save, here are some tips to help you get started with automated savings:

  • Set a Reasonable Amount: Start small and increase the amount as you become more comfortable. Begin with an amount that you can comfortably afford and that won’t put strain on your budget.
  • Create a Goal: Decide how much you would like to save and which kind of account you’d like to save in. Consider an emergency fund, a savings account for retirement, or a savings account for a big purchase.
  • Know Your Options: There are a few options when it comes to automated savings. For example, you can set up a payroll deduction from your employer or set up a pre-authorized transfer from your savings or chequing accounts.
  • Choose a Reputable Bank: Make sure you’re setting up your savings account with a credible and reliable bank. Many banks offer automated savings plans, so be sure to shop around and find the one that’s best for you.
  • Make Adjustments: If you find yourself wanting to contribute more or adjust the amount you’re transferring, it’s easy to make changes to your automated savings plan. You can decrease or increase the amount as you strive to reach your goals.


Automated savings is an effective way to save, especially for beginners. It eliminates stress and eliminates the temptation to spend, and it can also help you build healthy money habits. With a few simple steps, you can set up an automated savings account and start building up your savings. So why not give automated savings a try today?

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