We all have the best intentions when it comes to putting money aside for our various goals. We promise ourselves we’re going to put money aside every week, but then we don’t.
We hesitate because we worry we may need that money immediately. We put it off saving until the next week. Or we just forget to do it. We have so much going on that remembering to add money to our invest accounts becomes an afterthought. We know that $5 or $10 isn’t that much, but when we have to go and physically do it, it becomes, well, manual labor.
Automation is one way to change a nagging chore into a seamless habit.
Auto-Stash as a Commitment Device
Automatically investing with Auto-Stash can ease the financial burden of investing tons of money all at once. If you invest small amounts on a regular basis, your wallet won’t feel as much of an impact.
Consider the idea of a “commitment device.” Stephen J. Dubner and Steven Levitt, the economists who authored the bestselling book “Freakonomics,” coined the term as a way to lock yourself into a course of action that you might not necessarily choose, but that produces a desired result.
In short, commitment devices can help you accomplish your goals by helping you stick to your plans. We can use these devices to make it easier to achieve our goals, whether it’s time management, getting in shape, or saving for a trip.
Consider the Auto-Stash tools (Smart-Stash, Round-Ups, and Set Schedule) as commitment devices. By utilizing these tools to put money away for each of your goals, you’ll be better off than relying on your willpower alone.
So which Auto-Stash tool is right for me?
Auto-Stash has three different tools that can help you save and invest for any goal, in a way that works with your schedule, and your lifestyle. Pick your favorite tool, or explore them all. There’s no wrong way to use Auto-Stash.
Round-Ups automatically saves your spare change to your Invest account every time you make a purchase. If you spend $3.50, we’ll round up and we’ll save the extra $0.50 for you to invest!
All of that change can add up with time, supercharging your savings. Adios, piggy bank.
Set Schedule will help you save and invest automatically on your own schedule every week, two weeks, or month. Stashers who have an account and use Set Schedule, put $750 more into savings, on average, than those who don’t use this automatic feature.*
It’s an easy way to build wealth on a regular basis.
*Analysis includes data of approximately 30,000 non Auto-Stash users vs. approximately 30,000 Auto-Stash users. Non Auto-Stash users must have had at least one year since the last Auto-Stash transfer. Auto-Stash users must have had at least one transfer in the first year after initial transfer.
Want us to do all the work for you? Smart-Stash automatically studies your spending and earning patterns to intelligently save small amounts of money to your Invest account for you—only on days when you have cash to spare.
If you hate math, this feature could become your new best friend.
Here are three things to keep in mind when automatically saving for your goals:
Tip 1: Start small
Ease the financial burden of investing tons of money all at once. Using Auto-Stash will help you invest small amounts on a frequent basis, so your wallet won’t feel as much of an impact.
Tip 2: Go at your own pace
It’s not a competition. Everyone’s financial situation is different. Start small and work up from there to find the right amount to fit your budget.
Tip 3: Get comfortable
It’s important to leave room in your budget for expenses and other essentials. You can adjust or pause any of these tools at any time.
Commit to yourself
By automatically saving and investing on a regular basis, you’re reinforcing good money habits.
Consider Auto-Stash as your commitment device—a commitment to saving for your future goals.
Turn it on, and you can harness the power of automation.