Saving Made Simple: Automating Deposits to another Account

You may think that achieving your long-term financial goals has become a distant dream. Actually, it’s not. One of the smartest ways to make your life better is by automating some of the process of saving. This will save you both time and money, since you’ll have no chance of spending your own money! Automated transfers can keep your savings consistently growing.

Understanding Automated Savings: A Step Towards Financial Freedom

The Importance of Automated Savings

Automated savings can make a big difference in your financial wellness. By setting up regular transfers, you automatically separate money in bank account, so that the money stays there while you’re saving. Also, automating this little act of giving up control over your finances prevents you from resorting to buying things instead of saving. Automated saving eliminates the stress of going through a free virtual bank account to focus your time on things that really matter in your life vs. saving. Automating deposits can help you create a consistent savings routine which can help you get closer to your financial goals without having to remember to get the money into your account every month.

Benefits Beyond Savings

Saving automatically does more than just add money to your account. It also encourages you to be fiscally responsible and make better-advised financial decisions. By automating saving for the future, you’ll have an emergency fund which can help in the event of an unexpected expense or worsening financial situation. In summary, by automating saving you’ll not only create a financial safety net but you’ll also be propelled into having a solid attitude towards money management.

 Setting Up Automated Deposits

After creating the account, it’s time to have automatic deposits set up. With Baselane, you can control the frequency and amount of transfers. You can choose weekly, bi-weekly, or monthly deposits. How to set up automatic transfers: Log into the ‘Transfers’ section of the dashboard. Choose from your existing account and choose a recipient you could use the account to send money to your savings account, or any other separate money in a bank account you wanted to grow. You’ll then fill out the transfer information, such as how much and when you would like to receive the funds. Finally, hit “Submit. ” Now that you’ve got an automated deposit setup set up, you can simply click “Done”.

Benefits of Keeping Separate A Money in Bank Accounts

Improved Financial Organization

Dividends can go into different accounts in a bank if you decide to make it more straightforward with your personal finances. By having separate money in bank account, you’ll have more control over what you are spending. If you buy something, for example your current account may be used to send a lump sum payment to a specific account. Make sure you have separate bank accounts for personal finance, so that you don’t spend too much money in one account.

Enhanced Savings Discipline

You get the benefit of having separate accounts if you keep the funds dedicated to saving in one place. Basically, the more accounts you have the less likely you are to break out an ATM machine just because you want to buy something without thinking twice. It also helps you to get a sense of importance for getting your money into savings when you can see the growth of that nest egg. Plus, automating the deposit means saving becomes a part of your daily life so you don’t miss out on it. You may be wondering how you can automate this and what Baselane can do to make your savings easy.

Simplified Goal Tracking

With different bank accounts you can be much more granular about the types of financial goals you want to accomplish (such as taking a vacation, buying a new car, paying off a house, etc. ) a certain amount in an emergency fund) so you know how much money has been saved so far and how much you can adjust how much money goes towards specific objectives. You will feel great about reaching your financial goal when you see that your various accounts are working toward those goals. Keeping separate bank accounts will help free virtual bank account when it comes to your personal finances and help you reach your goals by being more organized, more disciplined, and holding yourself accountable.

Setting Up Automated Transfers: A Simple Guide

Understand the Basics

Before we dive into the technicalities of automating deposits, let’s understand what automated transfers are. I’ll use this word loosely to describe the process of making scheduled transfers from one bank account to another. Typically automatic transfers are done when saving money. It’s a very simple yet powerful trick and can be used to divide your bank account in such a way that this money will be distributed towards specific financial objectives, without letting yourself get carried away and spend them on impulse.

Embrace Financial Tools

See How it WorksIf you want to experience savings like a one-on-one experience, you may want to use a financial app like Baselane to keep track of your automated transfers and overall financial health. With, you have a simple, clear view of your finances. This means you can know exactly where you stand in terms of your goals – in real time. With these apps, this happens to you whether you’re budgeting for yourself, taking care of the kids, or dealing with work/life issues. By setting up automatic transfers you’ll make sure your money is in safe hands. It’s so easy to get started with this simple strategy and become a disciplined saver; saving money won’t get in the way of the rest of your life.

Common Mistakes to .. 

Avoid When Automating Savings

Ignoring Account Compatibility

One common mistake that people make is not checking with the financial institutions to see if their institutions support automated transfers. Before you set up a system where you’ll have different money in both bank accounts, you’ll want to make sure that both banks offer both to do automatic payments. Not all banks offer this type of option, and some might charge you for using this method – you’ll want to check with the bank about these issues or talk to a representative directly.

Conclusion

Automated DepositsAt its core, automatic deposits enable you to take control of your own savings. It is a way to save that works for you and allows you to set a goal. It streamlines the action of saving and increases the reward. Not only will you see the results of your effort in the form of an increase in your savings as your account balance increases, but you will also reach your goal without much effort. Through this process you are helping to build your financial discipline and will get the benefit of having your money in your wallet and on track.