Why Automating Your Finances May Be Your Secret Weapon
If you’re finding it hard to save, automated saving and payment settings can help.
If you're not a natural saver, setting aside money from every paycheck towards your savings goals can be hard. At Huntington, we can help you achieve your long- and short-term savings goals. Even if it's just a small amount, doing this can put you in a better position to handle any potential financial challenge.
Digital tools that can remember to save money for you can help you stay on track during uncertain times. We spoke with Kimberly Palmer, a personal finance advisor at NerdWallet and self-proclaimed "big fan" of automation, about how to tap into this power†.
For somebody who's just getting started automating finances, how should they consider prioritizing?
Kimberly Palmer [KP]: The first thing that should take priority is automating bill payments, because it's so easy to forget...and suddenly get hit with a late fee.
With credit cards, forgetting could trigger both a late fee and a penalty APR, which basically means the interest rate on your credit card can suddenly go up.
This may also apply to other monthly bills you may have, like rent or a mortgage payment, a student loan, or a car payment.
Okay, that helps protect me against payment charges. How can automation help me save money?
[KP]: Having a certain amount of your paycheck transferred into a dedicated savings account can help virtually any financial goal, large or small. You can focus on saving for things like a down payment on a house, an emergency fund, or a future trip you want to take.
Even if you're only putting away a small amount each month, when you check back a year later, you'll see that, without even thinking about it, you'll have made significant progress.
And check with your bank about budgeting tools that track your spending and alerts‡ that can tell you when your balance drops below a certain level or if you have a debit over a certain amount.
Savings Goal GetterSM
Make Real Progress Towards Your Savings Goals
Whether saving for the trip of a lifetime, or just putting money away for a rainy day, we can help. With Savings Goal Getter you create your goals, and we'll help you track your progress to get there faster. You can add up to 10 savings goals, plus an emergency fund for each of your Huntington Savings and Money Market accounts.
I’m worried about losing my job. Does it ever make sense to take a break from attempting to save?
[KP] Absolutely—that's the rainy day that savings accounts are designed for. When you experience a loss of income, then you may want to temporarily pause your automatic savings transfer; because you may need to dip into savings rather than accrue funds for a short period of time.
In addition to pausing those automated savings, you can cut back on other expenses, such as entertainment spending or restaurant spending.
What else do I need to know about automating finances?
[KP]: After you set up automation, I recommend doing a brief check-in monthly to make sure your deductions look like what you expect. Then, once a quarter, do a deeper dive to see if you want to make any adjustments.
The big bottom line is that devoting a little time to automation can help save you time and money. It's a great strategy to use to help you manage your finances.
Interested in automating your savings and your bill payment settings? Learn more about Huntington’s digital tools: Money Scout®§ and Bill Pay, which can help you automate your finances, making your finances a whole lot easier.
† Kimberly Palmer, Interview, December 2019.
‡ Message and data rates may apply
§ Money Scout automatically schedules transfers from your selected checking account to your selected savings account. A money market account (MMA) cannot be a selected savings account for use with Money Scout. A scheduled transfer may be canceled before midnight ET on the day it is scheduled. Transfer amounts and frequency may vary and will reduce the money available in your checking account to cover other transactions. You are responsible for ensuring your checking account has sufficient funds. You may be charged overdraft fees if your account falls below $0. Subject to eligibility, terms and conditions, and other account agreements.
The information provided in this document is intended solely for general informational purposes and is provided with the understanding that neither Huntington, its affiliates nor any other party is engaging in rendering financial, legal, technical or other professional advice or services, or endorsing any third-party product or service. Any use of this information should be done only in consultation with a qualified and licensed professional who can take into account all relevant factors and desired outcomes in the context of the facts surrounding your particular circumstances. The information in this document was developed with reasonable care and attention. However, it is possible that some of the information is incomplete, incorrect, or inapplicable to particular circumstances or conditions. NEITHER HUNTINGTON NOR ITS AFFILIATES SHALL HAVE LIABILITY FOR ANY DAMAGES, LOSSES, COSTS OR EXPENSES (DIRECT, CONSEQUENTIAL, SPECIAL, INDIRECT OR OTHERWISE) RESULTING FROM USING, RELYING ON OR ACTING UPON INFORMATION IN THIS DOCUMENT EVEN IF HUNTINGTON AND/OR ITS AFFILIATES HAVE BEEN ADVISED OF OR FORESEEN THE POSSIBILITY OF SUCH DAMAGES, LOSSES, COSTS OR EXPENSES.
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Money Scout® is a service mark of Huntington Bancshares Incorporated.
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