Saving money can be easier when it happens automatically. An automatic savings plan helps people consistently set money aside and build savings without having to think about it each month.
There are two common ways to save:
- Goal-focused savings: Set a specific savings goal, such as a vacation or major purchase, and determine how much to save regularly to reach that goal by a target date.
- Nominal amount savings: Automatically transfer a small amount—similar to what you might spend on a subscription or daily purchase—into savings on a regular basis.
Automatic savings can be set up through payroll deductions or by scheduling transfers from a checking account to a savings account. The best method is the one that fits your financial habits and makes saving easy.
The frequency of transfers can match your pay schedule, whether weekly, biweekly, or monthly. Smaller, more frequent deposits may feel easier to manage, while others may prefer larger monthly transfers.
Automatic savings plans are effective because they:
- Simplify the saving process.
- Help savings grow steadily over time.
- Save time by eliminating manual transfers.
- Reduce the temptation to spend money impulsively.
The key to success is to start saving and remain consistent. Even small automatic deposits can add up significantly over time and help turn financial goals into reality.
You have nothing to lose with automatic savings – but much to gain! If you’re ready to start saving for your financial goals, set up automatic savings now.
First Horizon Bank is a leading regional financial services company, dedicated to helping our clients, communities, and associates unlock their full potential with capital and counsel. It’s the powerful tools you need with the personal service you deserve. Contact First Horizon for all your banking needs.
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