Finance Tip: The Benefits of Automating Your Savings

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The Benefits of Automating Your Savings 





































At Kennebec Savings Bank, one of the most common questions we hear from our customers, whether they’re just starting out financially or are seasoned savers, is: “What’s the easiest way to save more money?”

My answer is always the same: automate it.

We live in a world where so much of our lives are automated, our bill payments, our grocery lists, even our thermostats. Why not use that same convenience to your financial advantage? Automating your savings is one of the simplest, most effective tools you can use to build your financial future with consistency and peace of mind.

Whether you’re saving for a rainy day, planning your next big vacation, or working toward a milestone like homeownership or retirement, automated savings can help you get there faster, and with less stress.

Why Automation Works

At its core, saving money isn’t just about how much you earn, it’s about consistency, habit, and making your goals a priority. That’s where automation can make a world of difference.

Think of saving like brushing your teeth. When it becomes part of your daily or weekly routine, you do it without thinking. It becomes automatic. And just like a healthy smile comes from brushing consistently, financial wellness grows from saving regularly.

When you automate your savings, you remove the guesswork, the temptation to spend instead, and the effort it takes to remember to move money around each month. You’re paying yourself first, without even having to think about it.

How to Get Started

Setting up automated savings is easy, and it only takes a few minutes. Here’s how to get started:

  1. Open a Dedicated Savings Account
    Start by opening a separate savings account if you don’t already have one. It could be a general-purpose savings account, or it might be a more specific account like an emergency fund, vacation savings account, or holiday gift fund.
  2. Set a Goal
    Give yourself a target. Are you saving $1,000 for a vacation? Three to six months’ worth of expenses for an emergency fund? A 10% down payment on a new home? Setting a specific goal not only helps you stay motivated, but it also helps you determine how much to save each week or month.
  3. Determine the Amount
    Even if you’re only able to set aside $25, $50, or $100 per pay period, that amount will add up quickly over time. Don’t wait until you can “afford” to save more, start with what you can and increase the amount as your income grows.
  4. Schedule Automatic Transfers
    Most banks, including Kennebec Savings Bank, allow you to schedule recurring transfers from your checking account to your savings account. You can time these to align with your payday—so the money moves before you even see it or are tempted to spend it.

Real-Life Impact: Small Changes, Big Results

Here’s the beauty of automated savings: even small amounts, saved regularly, grow into something meaningful. Let’s take a look at some examples:

  • Saving $25 every week equals $1,300 in one year.
  • Saving $100 every two weeks (roughly $200/month) becomes $2,400 annually, and over $12,000 in five years, not including interest.
  • Saving $50 every week for 10 years, with modest interest, could result in more than $30,000 saved.

When you look at the long-term impact, it’s easy to see how consistent, automated savings can open up new financial opportunities, without requiring a major lifestyle change.

What Should You Save For?

Everyone’s savings goals look different, but here are some common reasons our customers choose to automate their savings:

  • Emergency Fund: Life is full of surprises. A well-funded emergency savings account can keep you afloat during unexpected expenses like car repairs, medical bills, or job loss. Aim for at least three to six months’ worth of living expenses.
  • Vacation or Travel Fund: Planning a getaway? Automatically transferring funds to a vacation account each month can help you avoid the stress of using credit cards or dipping into other savings.
  • Homeownership: A down payment is one of the biggest financial hurdles when buying a home. Regular savings can get you closer to that goal faster than you might think.
  • Retirement: While 401(k)s and IRAs are the primary vehicles for retirement savings, adding to a separate long-term savings account on a recurring basis can provide flexibility and extra peace of mind.
  • College or Education Fund: If you have children, grandchildren, or are thinking about going back to school yourself, saving automatically for education expenses can help lighten the future load.
  • Holiday Spending: The holidays come around every year. By saving a small amount each month, you’ll be prepared to enjoy the season without debt or financial stress.

Tips to Maximize Your Automated Savings

1. Make it Invisible
Set up your automated transfer for the same day you get paid. That way, the money leaves your checking account before you have the chance to spend it.

2. Use Multiple Savings Buckets
Create separate savings accounts for different goals. Most online and mobile banking platforms make it easy to open and nickname additional accounts, like “Vacation Fund” or “New Car.”

3. Increase Your Transfers Over Time
As you get raises or pay down other debts, consider increasing your automatic transfers. Even an extra $10 a week can make a big difference over the course of a year.

4. Monitor Your Progress
Use your online or mobile banking tools to keep tabs on your savings. Watching your balance grow can be incredibly motivating.

Making It Simple at Kennebec Savings Bank

At Kennebec Savings Bank, we believe that saving should be simple, stress-free, and tailored to you. That’s why we offer:

  • Free and flexible savings accounts
  • Online and mobile banking with scheduling tools
  • Account nicknaming to track different savings goals
  • Personalized guidance from our banking team

If you’re unsure how to get started or want to discuss your goals, stop by any of our branches or give us a call. Our team is here to support you, wherever you are on your savings journey.

A Habit That Pays Off

Financial freedom doesn’t happen overnight. But with a clear goal, a bit of planning, and an automatic savings strategy, you’ll be amazed at what you can accomplish. It’s not about how much you make, it’s about how consistently you set money aside.

As President and CEO of Kennebec Savings Bank, I’ve seen time and time again how this one small habit can lead to big changes. Whether it’s helping a family buy their first home, a student graduate debt-free, or a retiree enjoy their next chapter with confidence, it all begins with saving.

So why wait?

Start today. Automate your savings. And take the first step toward the future you deserve.



Written By: Andrew Silsby, President & CEO