Reinforce Your Savings Habit Through Automation
Once you find motivation to save, make saving a habit. Don’t rely solely on good intentions because life gets busy and it’s hard to maintain focus, Sicchitano said. To reinforce the savings habit, you need to automate it, he said.
Maximize contributions to your 401k or workplace retirement plan. If you don’t have access to a workplace plan, save on your own with an IRA or other individual account. Schedule automatic transfers from your checking account on payday so you fund a retirement account before you can spend the money.
If you’re already contributing to a workplace or individual retirement plan, increase your contribution. “If you get a raise, bank the raise,” Sicchitano said. “Take whatever the difference your raise is and send it to a savings or investment account.”
Set a reminder on your smartphone or scribble a note to yourself right now to automate your savings.