What is a common method to increase savings over time?

Setting up automatic transfers to savings accounts is a widely recognized method for increasing savings over time. This approach is effective because it helps instill a savings habit and reduces the temptation to spend money that is meant for savings. By automating the process, individuals ensure that a portion of their income is consistently set aside for future needs or goals before they have the opportunity to spend it. This method aligns with the "pay yourself first" philosophy, ensuring that saving is prioritized in one's financial planning.

In contrast, spending all disposable income would leave no funds available for savings, while minimizing financial planning can lead to a lack of direction and missed opportunities for saving effectively. Only saving what is left at month-end often results in little or no savings, as many people find that remaining funds can be quite limited after expenses. Overall, automating savings transfers makes it easier to build wealth systematically and sustainably.