Automate Your Savings with SavedPlus

SavedPlus offers you the chance to automate your savings with each purchase and payment you make.

One of the pieces of advice that many of us receive from personal finance writers and experts is to automate some of your bills and savings. When you automate your savings, or set up automatic billing, you don't have to worry about remembering to fulfill your obligations. It just happens.

An interesting new app, SavedPlus, provides you with the opportunity to boost your savings, based on money you spend. Here's how it works:

Each time you make a purchase, or make a payment, a percentage of the amount is transferred to your savings account. So, if you set your savings percentage to 5%, each time you make a purchase, 5% of that amount will be automatically put into your savings account. You can really start to see how this might add up, and give an extra boost to your savings goals.

You can use the money to pay down debt, go on vacation, or invest.

SavedPlus

One of the things I like about SavedPlus is that it heads off the possibility of overdrawing your account with the transfers. Each day, money meant to be transferred to your savings account is aggregated, and you can see how much you have to that point. Then, once a week the transfer from your checking account to your savings account is made. However, that transfer is made only if your checking account is above the minimum balance you request. So, if your account dips below the minimum, no transfer is made.

You can exclude different types of payments and purchases, and it's possible to stop saving quickly and easily whenever you want.

How Much Does SavedPlus Cost?

SavedPlus comes with a free app. You can download it to your iPhone or your Android phone. It's also free to use SavedPlus during the first 90 days after you add a bank account to the application. The fee is 5% of your SavedPlus savings, with a cap of $5 per month.

It's true that you can set up an automatic savings plan with many major banks, and arrange your own transfer — and do it for free (as long as your bank doesn't charge account fees). But SavedPlus makes it kind of fun. I can envision a game where you use it as a penalty on spending. In this scenario, the goal would be to reduce the amount you're saving because you are learning to get your spending under control.

I can also see using it to target spending that isn't particularly important to you. If you realize where the waste is, you can draw attention that spending, and get hit with a savings “penalty” when you spend on these items. Eventually, you can cut out the unimportant spending and focus on the spending that actually enhances your quality of life.

What do you think? Is SavedPlus a good idea?

1 thought on “Automate Your Savings with SavedPlus”

  1. Mike@WeOnlyDoThisOnce

    Sounds like a great app. The interface and easy of use look great. I would still feel the need to double check numbers, as I’ve had discrepancies with automatic payments in the past.

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