One of the best ways to become financially disciplined and reach your money goals is to automate your savings—and with Chambers Bank’s user-friendly savings products, tools, and programs—you can get started today.
No one ever said saving money was easy. There are always going to be bills to pay, expenses you don’t plan on, and things to buy that weren’t necessarily penned into the budget.
But the reality is, if you’re not saving now, you won’t have money available in the event of an emergency. Not only that, but you won’t have money for big-ticket items such as a vacation, a college education, or a home down payment.
How do you get into the habit of saving then? The answer is automation. Keep reading to learn about the importance of automation and how you can use it to help you put money away quickly and effortlessly into your Chambers Bank accounts.
What Does It Mean to Automate Savings?
Automation means setting up automatic transfers to your savings and investment accounts at regular intervals according to your specifications. Once account service is automated, you no longer have to move dollars manually and your savings grows in time frames that work best for your budget.
How Automation Benefits Your Savings Game
When you choose to automate your savings, you won’t be tempted to spend extra money impulsively or procrastinate the act of saving. You also eliminate the task of moving money, which frees up your mind and gives you time for other tasks.
As the weeks and months pass, you will gain control and flexibility over your budget since the additional savings helps provide financial security in the event of an emergency, loss of income, or unexpected life event.
Savings Statistics At a Glance
- Over half of Americans admit that they don’t have an emergency fund, according to a poll by CNBC and Momentive; that number spikes to almost 75% for households with incomes under $50,000 annually.
- The personal savings rate in the U.S. was 4.6% in February 2023, down from a decade-long average of 8.9%.
- A nationwide survey by Provident Bank found that 48% of Americans have less than $1,000 in savings and 20% have no savings at all.
3 Steps to Automating Your Savings
Now that you understand why it’s beneficial to automate your savings, here are some easy steps you can take to begin growing that account balance:
1. Clarify Your Savings Goals
Before you can determine how much you should set aside each month, you need to be clear about what you’re saving for. If you don’t have an emergency fund yet, figure out what 3-6 months of living expenses totals up to and make a goal to save that amount. What about other goals? Are you saving for a car down payment? Planning a wedding? Ready to finally go on that big vacation?
Whatever you have in mind, set an amount you’d like to save for and then establish a deadline. Divide the total amount you want to save by the number of months required to reach the total and then prepare to set up your automation.
Here’s an example:
You want to save $3,000 for a vacation and another $9,000 needs to go toward your emergency fund. You’ve made a deadline for two years from now, so you will need to set $500 per month aside to reach these goals.
$12,000 ÷ 24 months = $500 per month
2. Choose Your Method of Funds Transfer
The next step in automating your savings is determining how you will add money to your savings account.
If you’re a wage earner, it can be beneficial to set money aside when your employer pays you. This goes along with the old adage “Pay yourself first,” which assures that your money doesn’t go toward other expenses. If you’re self-employed, you may want to plan a transfer once per month or depending on how often you’re paid.
Here are some options for moving money to your Chambers Savings Account:
Direct Deposit. This is an easy way to have money deducted from your regular employee salary and sent directly to your Chambers Savings Account. Ask your employer for a direct deposit form and fill out the requested information. Choose the dollar amount or percentage you want deducted from your salary and then submit the form to your employer for processing.
Recurring Account Transfer. For Chambers accounts, go to Chambers Online Banking or Mobile Banking and locate the Chambers account you wish to transfer money from. Select the transfer icon, choose an amount to transfer, the date of transfer, and the frequency of recurrence. Apply the changes to your account.
If you have an external checking or savings account and want to set up a recurring transfer to your Chambers Savings Account, you will need to first link the two accounts. Once you’ve done so, follow instructions from the financial institution on setting up your automatic transfer.
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Bonus Savings! The Savings Cents Program Savings Cents is a simple way to make your everyday purchases part of your overall savings strategy. It works like this: Whenever you make a purchase with your Chambers Debit Card, we will automatically round up your purchases to the nearest dollar and transfer the round-up amount to your Chambers Savings Account. Savings Cents is a free service available to any Chambers Bank member who has a Chambers Checking Account, Debit Card, and Savings Account. To enroll, you simply complete an Automatic Transfer Form to authorize the Savings Cents program; the form is available at any branch location, or contact us to receive the form. |
3. Track Your Progress
This is the final step in automating your savings, and probably the most fun! To track your progress, you can always check your savings account balance anytime using Online Banking or Mobile Banking.
But here’s something even better: Chambers Bank Personal Finance. This free digital money management tool allows you to view your account balances, monitor all transactions, and categorize your savings goals into “buckets” to help you see your progress.
To use Personal Finance, go to Online Banking and select the More tab at the top of your screen. Then choose Personal Finance and enroll in the program.
Get Ready to Save!
Now that you have some new saving tips, it’s time to get started with a savings plan. As you make progress, remember that you can always adjust your goals based on your budget and income. Additionally, remember to celebrate your wins along the way. Sometimes a small token such as dinner out or a concert can help keep you motivated to keep working hard toward those goals.
If you have any questions about Chambers Bank’s accounts, services, or tools, please contact us here or call our Customer Care Center during business hours at 1-800-603-1226.
