Topic: Automating your savings will help you save more - page 10. (Read 1281 times)

Actually that's an informative post by OP. I've never thought that method is called "automated savings" which I've been doing. It's actually make you be more practical person that almost everything that you will spend, will makes you think "I need to make this money spent to useful things" since it will just give you an fixed amount for you to budget your money. The longer you adapt the method of this saving, it will become your lifestyle which is good. I did it a long time not knowing how much I saved, when I opened it the money could even support me for months. This is actually common in my country, its like they are obligated to half their income and the other half would be straight in to savings even students and kids. But of course its up to them whether they follow the strict rules. Since it requires a lot of determination and disciplined for you to normally do it without thinking of spending it sooner.

You are correct and there are various names according to the country/region everyone is from. Most of the Western sphere believes in the share market or stock purchases. Moreover, their contribution is based on accounting and saving up money in the bank accounts and getting those savings interest rates. On the east side, their other ways such as Recurring deposits, Fix Deposits, Mutual Funds, Real estate (land focused), and Gold Accumulation. I have seen the last two at their peak in Asian countries. Anyone with a land mass and gold is rich person and the trend of saving money in them is insanely higher than any other country. Definitely saving pattern changes as per the culture as well and it plays a crucial part in the same. I would say, to be an efficient saver, one needs to have a proper portfolio. One must go with crypto addition considering its growing exponentially all the time.

In my country, here one of the digital banks has an automatic deposit feature which will deduct a certain percentage of the money deposited by the customer on a certain date. This process runs automatically and there will be no additional fees. I think that this feature is very good, considering that saving money manually every month is not very practical and in this way customers can save their money automatically and they can even lock this feature so that it can only be opened on certain dates. I am one of the customers who use this feature and I am quite satisfied with it.

i would not suggest this
i would suggest the 66-33 method

most essentials(bills) add up to 66% of income especially for low income people
the other 33% is for investing. where by. when investments yield profit. then use the profit for the "wants"

EG
imagine your min wage is £$10/hour ($1.6k a month) $1.066k goes to your bills and such and $533 goes to investments.
in a year you have $6.4k invested.

use the profits above $6.4k to then buy anything you want next year but keep the main stash to produce more profit ongoing

EG if you bought $533 of bitcoin in november, december january
N= $533 @$16.5k = 0.0323
D= $533 @$17.5k = 0.0305
 J= $533 @$21.5k = 0.0248

bitcoin total for Qtr= 0.0876 =$2480.77 today for $1600 meaning you can spend ~$880
and still have at todays price $1600 left in bitcoin

ofcourse. you can then ask do you really need /want to take out $880 of your stash to buy things you dont need. to then decide you you want to maximise more profit in future or just keep accumilating and taking bites out when you make small profits along the way

..
notes about investment
gold and real estate are at a HIGH. never buy high

also unless you have enough investment to buy a whole house. dont be fooled into buying time shares or other share products of real estate. because you end up also having to pay other costs along the way.

gold is on a high. so now that diesel is getting cheaper so will gold mining and also people will be seling their jewellery meaning the markets will saturate and so supply/demand shifts negative to mean gold will more then likely DROP

bitcoin is at a reasonable low compared to last 2 year history. so has more upside

buy low sell high

I know that one of my banks offer automatic savings, but I haven't tried it, and I'm not aware of the rules. I like the idea, though. But I think it would be best done with your salary or payroll account. You can choose to have the bank deduct a certain percentage of your regular salary or a certain amount every pay day. To make it even better, money kept under automatic savings could not be withdrawn through ATMs. It has to be done over the counter. This additional hassle will probably help you avoid touching that money.

On a side note, though, it is better to save in Bitcoin.

I don't think so, I think what is really effective is pre-saving. You just set aside an amount for savings/investment, either automatically or manually, but you just charge, that's what works. Waiting until the end of the month to see what you have left over to save doesn't usually work.

I have never used automatic savings and I have saved and invested a lot over the years, so the conclusion you draw, although it may be true in some cases, is far from useful for everyone.

There is no time we can't save, whether the harsh or convenient times, only that we don't often see savings as a priority, and we are wrong about that. I just started inculcating the habit of saving last month, it was dawn on me as I've been spending so much, and most of them are on frivolities. This is because I had excess and without a good plan.

So, people could be indulging themselves whether they have the money in excess or not. But savings, even to the extent that we will feel it will help so much in making us achieve and plan towards better goals.

I agree with you, OP; saving money is difficult because of inflation; if you consider your basic needs, you cannot save anything because the price of things is always rising due to inflation, while the amount of money we are gaining in monthly salary is not increasing on a regular basis; Fiat keeps losing value, basic needs prices keep increasing, so it is always difficult to save money these days unless you decide to skip your basic needs for future investments.

This will be very useful, but Fiat should be reconsidered entirely.
Because Bitcoin's value is not fixed, an automated decision to invest in Bitcoin can result in a profit within a short period of time.

I just add to what you said, saving is an obligation that must be done because of a belief why you are doing it. Discipline is needed here so that you can be sure to achieve your goal here.

       It should not be moved, that's why self-control is also necessary in saving and if you don't have it, it's better to just save it in the bank or if it's in cryptocurrency, put it in a legitimate staking program, it depends on you if you do it in a centralized or decentralized, this is just a suggestion of mine.

If a person's earning is more than enough for his basic needs then this automatic savings is helpful but it is not effective if the person's earning is less than enough.  At the end of the day no matter how a person actively use this automation, he will end up withdrawing his saving to fill the gap of his financial incapability.


I believe the tool can be adjusted according to your likings, since it is a software that automates saving schedule, you can freely modify it to meet your needed setup for your earning schedules.


Getting extra jobs for extra earning is another story, the thread is about automating savings but yeah, to be able to increase our capability to save money, we must look for extra earnings. or side jobs.

For me, an automatic saving can help us a lot especially if it is started while young. But the division of earned money between savings and daily needs must still be correct, which means it is better for those who earn a fixed income.

I'm just asking, what automatic saving apps are good to use and are they safe to use?

Automated saving would indeed work for those who are monthly earners. But savings should be through initiative and discipline indeed, for it to have some sort of 'chain' to not be used to "wants" than with "needs". Initiative would somehow push that individual to avoid using his/her savings easily. But this simply depends on the person. The problem why savings does not work the way it should be, is because of drives and implusiveness. If an individual would be fully aware of the cashflow in his/her account, expenses would be anticipated and measured which would allow the individual to avoid being oushed to the edge of withdrawing some of the saved money.

Funny enough automatic savings is a modality which has been used here in my country for at least some decades so workers can have enough money to retire after reaching their golden years.

It is a different system from what other countries do, while they use that income to invest in blue chip portfolios, here just stockpiled a lot of money from people's salaries.  That could have worked better if we chose to do so with a more stable asset or currency instead doing so with our weak local currency which lost most of its value in some years.

When the time of the truth came and some workers were allowed to access their savings for retirement, they encountered they had the equivalent of 2$, after saving for entire years.  

It is one of the things which convinced me we have a evil government.

From your explanation, it is obvious you are talking to salary earners who receive money on monthly basis. So how about those not belong to salary class? Well, saving to me is all about determination and self discipline. I am not a salary earner, I don't receive money on a monthly basis but I have designed a formula on how to spend whatever money comes into my hands including savings. Unless in the case of emergency, I do save money from every penny that enter into my hands.

I would advise you to first of all stop relying on salary alone. Get another means of income aside your salary and start saving money at whatever time you wish.

The concept of automatic savings is a valuable one, as it allows us to overcome our natural tendency towards present bias and immediate gratification. As George S. Clason writes in "The Richest Man in Babylon", "Wealth grows where men exert energy to acquire it." By automating our savings, we can ensure that we are consistently putting in the effort to build our wealth, rather than relying on our own willpower to save. As we continue to deposit a fixed amount of funds at specified intervals into our savings or investment account, our wealth will grow steadily over time, without the need for constant decision-making or discipline. This is a powerful tool for anyone looking to build a secure financial future.

I believe in the $3 rule theory by Daymond John, which states the first dollar goes for your necessities (food, bills e.t.c), the second dollar is investment (bitcoin, real estate, stocks) and the third dollar is for wants, things you like to have but you do not need, if you have the discipline to cut spending the last fraction on your wants, that money gets cycled back to your investments. That means you only spend a part of what you earn on the things you need and the rest goes to investments. This is not a easy way to live and most people won’t choose this lifestyle.

I prefer to save my money in a currency that’s higher than the one I earn, for example I’d save my money in usd if I earn in naira, that way I hedge against the inflation and my money appreciates in value.

Yes we all experience inflation, but the thing is we can still save little by little so that we will have a savings soon, we can add more when we have more than enough. In my own experience, I am buying small bit of Bitcoin everytime I will get my salary whether it is bullrun or bear run still I will invest. But of course not all people will understand my situation.

If you check almost all countries in the world, you will noticed that there is inflation, this makes their money value in the country to decline and a persistent rise in goods and services in that country. Why saving in bank? Especially if you countries is always an inflationary country.

It is good for someone to save money, but not good to always think fiat is the way, you can buy gold, property or bitcoin instead. If it is about your salary, it is good to buy bitcoin when the price is low.

Yea true, we have to satisfy all our needs and wants basically as a human.these needs can not be satisfied, with little or no capital. You need money and sometimes saving up can be a real life saver. Now when it comes to automating your savings it's just going to help you save a particular amount in which you have placed for it to save and you can also withdraw at anytime. For me, I would prefer locking up my savings. with this, you can place the automator and lock up your savings till when you actually need it and this I will say comes with determination. However, you should be aware that when you decide to do this, you can no longer have Access to your money even in emergency and this can be frustrating. So wouldn't recommend this for anyone who knows that they just don't have a reliable source of income.

As humans, we tend to have a need for immediate satisfaction. These needs keep increasing on dialy basis, if one decide to go by all these needs, one may end up without a saving. Most time we are faced with a decision like whether to spend our money on our daily needs or to save them. Here, we may likely to be biased toward our present selves, so we're likely to make the choice that will benefit us most at that moment which mostly will be buying our daily needs. However, we can overcome present bias by taking away the ability to choose between saving and spending altogether. This is where automating your savings comes in.

What do I mean by automatic saving? Automatic savings is a type of personal savings system in which the plan contributor automatically deposits a fixed amount of funds at specified intervals into their account. The typical structure of this type is an automatic transfer from an individual's bank account into a savings or investment account.

When you automate, you eliminate a decision – to save or not to save. Once you decide to set up auto-save and go through the initial process, that’s all. You keep saving at interval without a need to make a decision on either to save or not. With this one savings keep accumulating with time till one have a reasonable amount.

With automatic savings, ones monthly salary becomes: Salary- Automatic savings amount. With this, one will only calculate is daily needs on the remaining amount rather than calculating on all it's salary.

CONCLUSION
Saving money isn't something easy, it comes with determination and self-discipline but with automatic saving one can easily set his/her saving amount at interval.