- Automation takes away the pain of saving.
- Commitment devices (like Auto-Stash) help you keep your money promises to yourself.
Automation can make saving easier. Auto-Stash puts it into action.
It’s part of The Stash Way. By automating sums of money into your savings or investments, on a regular basis, you’re reinforcing good money habits.
How automation can take the pain out of saving
We have the best intentions when it comes to putting money aside for the future. We promise ourselves we’re going to put money aside every week. But often, we don’t.
We hesitate and worry that we’ll need the money immediately. We put it off until the next week. Or we just forget to do it.
But when we have to go and physically do it, it becomes, well, manual labor. Some months, we just may not feel like doing it, or we may feel like we just can’t.
That brings us to Auto-Stash, which can be a great way to start creating better money habits.
It’s an easy-to-use feature on Stash. It lets you invest a sum of money consistently over time, regardless of the temporary ups and downs of the market. You won’t have to worry about picking the right time to invest.
That’s called “timing the market” and we don’t recommend it. Here’s something to always remember—investing always involves risk.
Four ways to make Auto-Stash work for you
Auto-Stash is a way to put away money toward your goals without having to agonize over whether or not you can live without that money each week.
Here are some tips on how to get started:
- Start small. Pick an amount of money that you can handle leaving your bank account on a weekly, bi-weekly, or monthly basis.
- Ramp up. Feels good? Ramp it up, automate a little more. Another $5 or $10 a week can really add up over the years.
- Go at your own pace. It’s not a competition. Everyone’s financial situation is different. It’s up to you to find the right amount of money that you can comfortably save and invest.
- Be realistic. You don’t want to overdraft your account or not leave enough money in your account for the essentials.
Auto-Stash as a commitment device
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 means with which to lock yourself into a course of action that you might not otherwise choose but that produces a desired result.”
In other words, a commitment device makes it more difficult to break your promise to yourself, whether it’s weight loss or time management, getting in shape, or creating better money habits. They make it easier to stick to our plans.
Commit to yourself
Consider Auto-Stash as your commitment device—a commitment to saving for your future goals.
Turn it on, and harness the power of automation.