What is an automatic savings plan ?

What is it ? 

An automatic savings plan (aka ASP) is a standing bank transfer order that transfers money from your current account to your savings account on a fixed date.
The idea is to put aside a fixed sum however small or large it might be as savings on a regular basis. It is an excellent tool to determine how much you really need to live off and how much you can save. Your savings are thus visually separated from the current account’s balance and are not instantly accessible with bank cards.
When you have to retransfer the savings back to the current account it can appear as a psychological barrier and can prevent from over spending

Tip

Set your ASP transfer on the first days once your salary/pension has arrived. If at each end of the month you still have money left on your current account you can choose to raise the amount of your automatic savings plan.
On the other hand, if you need to replenish your current account systematically from your savings during the last week of the month, it means you should have a closer look at your budget and see if you can reduce your expenditures or  reduce the amount of your automatic savings plan. 

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