Most of our savings are done automatically. This means I don't need to make a physical transfer at the bank, on the phone or even online.
I mentioned before that we are saving an additional $100 a month now as of March. This was part of my husband's raise. This money is set up to be withdrawn from his paycheck and deposited by payroll to our savings account. We already had $25 a month going previously (this deposit was required to get one of our high CD rates). We added $100, so the full amount being deposited is $125 a month. Again, all set up automatically. On an annual basis this will equate to $1500 a year in savings.
Our retirement accounts are set up automatically too. The Roth IRAs are set up with the mutual fund company to withdrawal $458.33 for each of us on the day we designated. We do have the option of stopping or skipping these each month. We did do that for one month earlier this year for cash flow reasons, as result our investment amount is now $500 each to make sure we each contribute the maximum amount to our Roth IRAs each year. That amount currently stands at $5,500 each.
My husband is also signed up for automatic investment into his work's retirement account (TSP). He is now saving 11% of his basic pay. He had been at 10%, but we increased it by 1% when he received his raise this year. His contributions are applied monthly to his retirement account automatically.
Auto savings makes things so easy! Eventually you sort of forget that you are doing it, well until you look at the balance accumulated! What do you automatically save for?
Automatic Savings
April 3rd, 2017 at 06:43 pm
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