How to Automate Your Savings and Save More – A Complete Guide

Rajesh, a young professional from Mumbai, often found himself puzzled at the end of each month, wondering where his hard-earned ₹1,00,000 salary had disappeared. Despite his best intentions to save, unplanned expenses always seemed to crop up, leaving little for his future goals.​

Rajesh's situation isn't unique. A recent survey revealed that 75% of Indians lack an emergency fund and could default on EMIs in case of sudden income loss. This statistic warns of a widespread challenge: while many intend to save, the absence of a structured approach often reduces their efforts.

Embracing automation can bridge the gap between intention and action, paving the way for a more secure financial future.

1. Set Up Automatic Bank Transfers for Savings

Many people struggle to save because they rely on willpower alone. But saving doesn’t have to be complicated. Setting up an automatic bank transfer ensures that a fixed amount from your salary moves to your savings account every month without you even thinking about it. 

If you earn ₹1,00,000 a month and transfer ₹10,000 to savings automatically, you will have ₹1,20,000 saved in a year. This simple step can help build an emergency fund, a vacation fund, or even a down payment for a home. 

Read More – How to Automate Your Investments for Passive Growth in 2025

Most banks allow customers to schedule automatic transfers, so you don’t have to remember to save—it happens independently. 

Set the date right after payday so you won’t be tempted to spend first and save later. Small steps like these can make a huge difference in achieving financial goals without stress.

2. Use a Salary Split to Directly Save a Portion of Your Income

Many employees receive their full salary in one account and then struggle to save because spending comes first. Instead, you can ask your employer to split your salary into two accounts—one for daily expenses and another just for savings. 

This method ensures that a portion of your earnings is saved before you even touch it.

• Decide Your Split Percentage

The first step is to decide how much you want to save. If your salary is ₹1,00,000, you could allocate 20% (₹20,000) to your savings account and the rest to your main account for spending. The higher the percentage, the faster you build savings.

• Open a High-Interest Savings Account

Instead of using a regular savings account, consider an account that offers better interest. Many banks offer special accounts for salaried employees with higher interest rates. If your savings earn 5% annually, the ₹2,40,000 you save in a year can grow further.

• Automate the Split with Your Employer

Most companies allow employees to split their salary into multiple accounts. Talk to your HR or payroll department to check if this option is available. This makes saving effortless.

• Use a Savings Goal Tracker

Some banks and apps let you track your savings goals. If you’re saving for a car, a ₹5,00,000 target can be broken into monthly savings plans. Tracking progress motivates you to stay consistent.

• Monitor and Adjust the Percentage

Life changes, and so do expenses. If you get a raise, increase your savings split. For example, if your income rises to ₹1,20,000, keeping the same 20% split would mean saving ₹24,000 instead of ₹20,000. Increasing savings as income grows helps secure your future.

A salary split is a simple trick that makes saving a habit. Once set up, you don’t need to think about it, and your money grows without effort.

3. Enable Auto-Roundup Features on Your Debit Card Transactions

Many banks and apps now offer an auto-roundup feature that helps you save every time you spend. When you buy something, the cost is rounded up to the next ₹10, ₹50, or ₹100, and the extra amount is moved to your savings. 

For example, if you buy coffee for ₹97, the transaction is rounded up to ₹100, and ₹3 is added to your savings.

• Small amounts add up: If you save ₹10 on each transaction and make 300 purchases in a year, that’s ₹3,000 saved effortlessly.
• Great for emergency funds: Instead of waiting to save a big amount, small roundups can create a ₹10,000 backup fund over time.
• No Effort needed: Since everything is automatic, you don’t have to track expenses manually.
• Perfect for micro-investments: Some apps link roundups to investment accounts, turning spare change into stock or mutual fund investments.
• Works with UPI transactions: Some payment wallets now offer roundups on UPI payments, helping digital users save easily.
• Customisable settings: You can choose how much to round up based on your budget. A higher roundup amount leads to faster savings.
• Encourages mindful spending: Watching your savings grow with every small transaction makes you more aware of your money habits.

The auto-roundup feature is like collecting spare change but smarter. It builds savings effortlessly without impacting your daily budget.

4. Use Investment Apps with Auto-Saving Functions

Many people hesitate to invest because they think it requires a lot of money or effort. But with today’s investment apps, you can start small and still see your money grow. 

Auto-saving investment apps take small amounts from your bank account and invest them automatically in mutual funds, stocks, or fixed deposits. Even if you invest just ₹5,000 per month in an SIP, at a 10% annual return, you could grow your wealth to ₹10,32,760 in 10 years!

How Investment Apps Help You Save and Grow Money?

Steps to Start Auto-Investing

• Pick a trusted investment app: Many apps like Groww, Zerodha, and Paytm Money offer auto-saving investment options.
• Choose a goal-based plan: Whether it’s for retirement, a house down payment, or a child's education, setting a goal keeps you motivated.
• Start with SIPs (Systematic Investment Plans): Even ₹2,000 per month in mutual funds can grow into lakhs over time.
• Set automatic transfers: Link your account so the app deducts and invests money on a fixed date.
• Monitor and adjust: As your income increases, raise your SIP amount for better growth.

Investment apps make saving and growing money effortless. Instead of keeping money idle in a savings account, you can let it work.

5. Schedule Recurring Deposits into a High-Interest Savings Account

A high-interest savings account offers better returns than a regular one, helping your money grow while remaining accessible. 

If you schedule a recurring deposit of ₹10,000 every month into a high-interest account, you can earn up to ₹6,000 extra annually at a 5% interest rate.

Best Ways to Use a High-Interest Savings Account

1. Emergency Fund: Keeping ₹1,00,000 in a high-interest account can give you an extra ₹5,000 a year just in interest.
2. Short-Term Goals: Whether saving for a wedding or a vacation, a high-interest account grows your money faster.
3. Tax-Saving Fixed Deposits: Some accounts offer FD-linked savings, letting you lock in money and save taxes.
   
   

Steps to Set Up a Recurring Deposit

• Choose a bank offering high interest: Some banks offer 5% or more on savings.
• Schedule automatic deposits: Set up monthly deposits to build savings consistently.
• Link to your salary account: This prevents manual effort and ensures disciplined savings.
• Keep withdrawals limited: Avoid withdrawing unless needed to maximise interest.

A high-interest savings account is a great way to build wealth while keeping funds liquid.

6. Use Budgeting Apps to Allocate Savings Automatically

Many people struggle to track their expenses and save whatever is left—often nothing! Budgeting apps solve this by automatically setting aside money for savings before you even spend. 

Also Read - 10 Best Passive Income Ideas for 2025 to Grow Your Wealth

If you earn ₹1,00,000 per month and set a budget of ₹60,000 for expenses, these apps ensure that at least ₹40,000 is saved or invested before you start spending.

Why Budgeting Apps Make Saving Easy?

• Tracks your spending: Helps you know where your money goes.
• Allocates savings automatically: Moves money into different accounts before spending.
• Sends alerts: Reminds you if you overspend in any category.
• Creates financial goals: Helps you save for specific needs like a car or house.

Steps to Start Using a Budgeting App

1. Download a good budgeting app: Apps like Walnut, Money View, or YNAB help track and save money.
2. Set savings goals: Decide how much you want to save monthly and let the app allocate it.
3. Enable auto-transfers: Connect your bank to automate savings.
4. Categorize expenses: Assign budgets for groceries, rent, entertainment, and more.
5. Review and adjust: Check reports monthly and optimise savings.

Budgeting apps make sure that savings are a priority, not an afterthought. By automating your financial planning, you can build wealth effortlessly while managing expenses better.

7. Set Up a Fixed SIP (Systematic Investment Plan) for Wealth Growth

Many people dream of financial freedom but struggle to save regularly. A Systematic Investment Plan (SIP) helps solve this by investing a fixed monthly amount in mutual funds. It ensures disciplined saving and allows money to grow over time. 

Even if you start with just ₹5,000 per month, the power of compounding can turn it into a large sum in the future.

How SIP Helps Grow Your Money?

Imagine Rahul, a 30-year-old who starts an SIP of ₹10,000 per month in a mutual fund, giving 12% annual returns. Here’s how his money grows over time:

Steps to Set Up a SIP

1. Choose a good mutual fund: Look for funds with a strong past performance.
2. Decide the monthly amount: Start small with ₹5,000 or ₹10,000 and increase later.
3. Set up auto-debit from your bank – Ensures investment happens on time every month.
4. Stay invested for the long term: The longer you invest, the higher your returns.
5. Increase SIP when you get a raise: If your salary increases by ₹10,000, raise your SIP by at least ₹2,000.

A fixed SIP makes wealth creation easy and stress-free. The key is to stay consistent and let compounding work for you.

Conclusion

Saving money doesn’t have to be difficult. By automating savings, you can build financial security without stress. Simple steps like automatic bank transfers, salary splits, SIPs, and investment apps help money grow effortlessly. 

Whether you're saving for an emergency fund, a house, or retirement, automation ensures you stay on track. The solution is consistency—set up these methods once and watch your savings grow over time. 

Start today, and by the end of 2025, you will have a stronger financial future without even trying!

FAQs

1. What is the best way to automate savings?
   The best way is to set up automatic bank transfers, SIPs, and salary splits so that money is saved before spending.
   
   
2. How much should I save every month?
   Experts suggest saving at least 20% of your salary. If you earn ₹1,00,000, try saving ₹20,000 monthly.
   
   
3. Can I change the amount saved each month?
   Yes, you can adjust your SIP, salary split, or bank transfer anytime based on income changes.
   
   
4. Which apps help with automatic savings?
   Groww, Zerodha, Paytm Money, Walnut, and Money View help automate investments, budgeting, and savings.
   
   
5. How do I stop myself from spending emergency savings?
   Keep emergency savings in a separate high-interest account and avoid linking it to your debit card.
   
   
   

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