10 Year Target
Jul 29 · 3 min read

Saving is easy. Especially if you do not have to think about it. That is why I automate my saving. And so should you.

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Saving My Salary

Each month I have a minimum of money I want to put aside to my savings account. In order to do this as smoothly as possible, I have created a recurring payment from the account I receive my salary and onto a savings account. This transfer is happening on the same date as I receive my salary. I have also done the same with my regular expenses (they are transferred to an expense account). That way when I check my account after receiving my salary I see what is left AFTER savings and expenses. Pay yourself first is a quote often thrown around, and that is what I do here.


Punishing Myself When Spending

If i were as hardcore as some of you my automated salary saving would be 90% of my income. But I am not that hardcore. I do not know every month what my variable costs are and therefore I like to keep some money on my account after the initial savings. However, that does not mean I am finished saving this month. Oh, no.

The enemy of saving is spending. And since I like saving I am going to punish myself for spending. My bank has a system for this. I have set it up so that every time I swipe my card (and I live in Norway so I never use cash), a preset amount is transferred to my savings account. At the moment this amount is about $2.5. You don’t necessarily notice this in the short term, but in the long-term, this can add up to a substantial amount. The last 4 weeks (where I have not spent much money because I mostly been away on my parent's cabin) I have swiped 23 times. That means $57.5 in additional savings. Nice right? Another easy way to automate my saving.

Punising myself when spending. Automate my saving.
Punising myself when spending. Automate my saving.
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Manual, But Somehow Automatic Saving

This one I admit I have to perform manually. But I am so determined to do it that is happens almost automatically. My salary consists of a base salary and I get a bonus every now and then on top of that. Whenever I receive a bonus I look at the amount and transfer this amount in total to my saving account.

Remember I wrote about mental accounting earlier? Bonuses are really easy to regard as additional money that you can spend. No sir. They are going into the savings.


Automatic Savings Distribution

Once I have set aside my money I need to figure out what to do with it. I have automated my savings, but I want to have control of some of my investments. So some of the money stays in this particular savings account (that I call my investment account). But some of the investments are also automated. Each month I have automated my purchase of mutual funds. A preset total amount is transferred every month. This money is then used to automatically purchase 4 different mutual funds.

Have you automated your savings? Please tell me how you make saving easy for yourself.


This article is for informational purposes only, it should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions

Making of a Millionaire

Stories about money, personal finance and the path to financial indepndence.

10 Year Target

Written by

Investor in my early 30’s determined to generate enough assets in the next 10 years so my return-on-investments matches my expenses. https://10YearTarget.com

Making of a Millionaire

Stories about money, personal finance and the path to financial indepndence.

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