Saving money consistently is one of the most important habits for long-term financial health—but for many people, it’s also one of the hardest to stick to. Life gets busy, bills come up, and good intentions often fall by the wayside.
That’s why our Finance Tip Friday this week is simple but powerful:
Automate your savings. It’s the easiest way to make sure you actually save—and it takes the decision-making out of the equation.
At Basso & Guida, we help clients across Long Island develop financial systems that work with their lifestyles. And when it comes to building savings, automation is one of the best tools available.
What Does It Mean to Automate Your Savings?
Automating your savings simply means setting up a recurring, scheduled transfer from your checking account into a savings account, retirement account, or investment account—without needing to manually move the money each time.
You can automate savings through:
- Your employer (direct deposit into multiple accounts)
- Your bank (automatic transfers between accounts)
- Your retirement plan (401(k) or IRA contributions)
- Financial apps (round-up savings or budgeting platforms)
Why It Works So Well
✅ Saves You from Yourself
If you wait until the end of the month to “see what’s left to save,” chances are it won’t happen. Automation removes temptation and emotion from the process—your savings are handled before you can spend it.
✅ Builds Consistency
Small amounts add up over time. Whether it’s $25 a week or 10% of your paycheck, automated savings create a reliable path to reaching your financial goals.
✅ Makes Saving a Habit
When saving becomes a routine background process, it stops feeling like a chore—and starts becoming a lifestyle.
✅ Helps You Stay Ahead of Emergencies
An emergency fund is the cornerstone of financial security. Automating deposits into this fund ensures you’re ready when unexpected expenses pop up.
Where Should You Automate Savings To?
Where you send your automated savings depends on your goals. Here are a few ideas:
- Emergency Fund: Aim for 3–6 months of expenses in a separate, easy-to-access savings account.
- High-Interest Savings Account: Great for short- or mid-term goals like vacations or home improvements.
- Retirement Account (IRA, Roth IRA, or 401(k)): Automate contributions to take advantage of compound growth and tax benefits.
- Kids’ College Fund (529 Plan): If you’re saving for education, automate monthly deposits here.
- Investment Account: For longer-term growth beyond traditional savings.
How to Get Started
- Pick your goal – Emergency fund? Retirement? Big purchase?
- Choose the right account – Separate it from your checking account to reduce temptation.
- Set an amount and schedule – Even small amounts like $25 or $50 per paycheck are impactful.
- Review and adjust as needed – As your income or goals change, so can your savings plan.
Final Thoughts: Set It and Forget It (Mostly)
Automation is one of the few financial strategies that works better the less you think about it. It helps eliminate procrastination and builds wealth in the background—while you focus on running your business, managing your household, or planning for the future.
At Basso & Guida, we bring Precision in Numbers and Passion in Service to every aspect of your financial life—including helping you build smart, sustainable saving habits.
📞 Contact us today if you’d like to schedule a financial check-in—we’ll help you put systems in place that actually work.
