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 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 prioritize?
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.
Bill Pay – An Easier Way to Pay Your Bills
Pay your bills digitally with Huntington. It’s simple. You tell us how much the payment should be and when to send–and we’ll handle it all for you – for free. Learn more.
[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 of over a certain amount.
Money Scout℠ - Your Automatic Savings Tool
Money Scout analyzes your spending habits, income, and upcoming expenses to find money that hasn't been used in your checking account—from $5 to $50—then moves it from your checking to your savings, automatically. Learn more.
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, restaurant spending, and personal care costs.
[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 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.