I Tried Saving 10% of My Salary with Automatic Transfers
When I switched jobs, I opened a new salary account and set up automatic transfers right away. The money gets transferred the moment my salary lands, so I don't even see the spending money.
I started with 5% and now I've raised it to 10%. This is way more convenient than diet-style frugality like cutting back on coffee. Last month, after all the insurance premiums had been deducted, I made up my mind and raised it again to 15% lol.
Of course, the future is uncertain, but I'm sure once it's saved, I'll find somewhere to use it later.
5 answers
Agreed. Automatic transfer is the most reliable. If it's out of sight, you won't spend it.
Oh, I didn't know that. I should try putting in 10% starting next month too.
Well, that's a bit... If you raise it to 15% and then can't withdraw it when you need a lump sum later, it might end up being more stressful. I personally feel more at ease just manually putting money into a savings account every month.
I also set up an automatic transfer on payday, and it really does keep me from spending. It feels way more impactful than just skipping a cup of coffee, lol.
I started with 5%, but lowered it to 3% because living expenses were tight. Since incomes differ, it's hard to just copy someone else. But if it works for you, that's a good method too.