This news story suggests that when it comes to putting away money for savings or investing, it may be better for some people to automate the process.
If money is automatically deducted from your paycheck and deposited into a savings, retirement, or investment account, the logic is that you won’t miss the money, and you’ll be better off, since you’ll have more in savings.
I think there’s merit to that, especially if you make adjustments to increase your automatic savings every time you have a pay raise.
For me, I enjoy manually taking money from one account and putting it in the emergency fund.
But, I also appreciate the “discipline” an automatic transfer can have on a person’s financial situation.
Whenever my husband gets his next raise, I hope we can be disciplined enough to increase retirement and savings contributions, without increasing our standard of living to the same degree.
What about you? Do you save automatically? Or do you prefer manually transfering the funds?