5 ways to automate your savings

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Here are some ways to automate your savings

Saving money is the foundation of financial planning. But let’s face it, life can get hectic. Managing expenses, balancing responsibilities, and occasionally feeling unsure about where to begin, saving consistently can seem daunting. This is where automating your savings can make it easy. A specific amount is automatically transferred to your savings or investment account, based on a schedule you set. There is no need for reminders and manual processes every month.

Here are some ways to automate your savings:

Set up automatic transfers: You can schedule recurring transfers on a specific date each month to your Savings Account.
Streamline recurring expenses: Set up auto-debits for Credit Card bills, loan EMIs or utility bills, instead of paying them manually every month.
Maximise salary deductions: Contribute a larger portion of your salary towards schemes like the Employee Provident Fund (EPF) and the National Pension Scheme (NPS) to save money as they are exempt from tax.

Choose the right type of investment:

Type of investment	When should you opt for them?
Recurring Deposits	To save a stipulated amount each month and earn compounding interest. You can start with small amounts and get assured returns.
Fixed Deposits	To save if you have a lump sum amount to invest. Axis Bank Auto Deposit links your existing Savings Account and automatically transfers multiples of ₹5,000 to an FD every time your account balance crosses ₹25,000.
Mutual Fund SIPs	To ensure that a fixed amount is deducted from your Savings Account and invested in the Mutual Fund of your choice via Systematic Investment Plans and automating them.
Reward Credit Card	To avail rewards on every spend and analyse your spending habits to identify where you can save

Also Read: These are the mantras you need to learn to boost savings

Conclusion

As your career advances and your priorities change, consistently reviewing and modifying your savings strategy even when automating your savings will guarantee discipline, and the creation of long-term wealth. Automating your savings is an effective tool to help you in this strategy and remain dedicated to your financial objectives without requiring manual effort.

Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.

Mutual Fund investments are subject to market risk. Please read all scheme-related documents carefully. Axis Bank Ltd. is acting as an AMFI registered MF Distributor (ARN code: ARN-0019). Any purchase of Mutual Funds by Axis Bank’s customer(s) is purely voluntary and not linked to availment of any other facility from the Bank. This content is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future returns. Readers are advised to consult a qualified financial advisor before making any investment decisions. Terms and Conditions apply.