Independent article: Soft savings - the benefit of automating your savings

This is a great idea in principle, as the vast majority of us tend to spend what we have. Consequently, the principle of paying yourself first — by setting up automatic savings, investment, and pension contributions via direct debit — is crucial for achieving long-term financial success. I find that people adjust to this very quickly. The best approach is to establish these regular savings as soon as you start work and to increase them every time you receive a pay rise or promotion. That way you never miss that money as you never really had it in the first place. Automation also takes the emotion out of saving, turning good intentions into consistent habits. Round-up apps work on the same principle and should be encouraged, but they’re no substitute for full-fat saving.

Soft saving works because it fits how real people behave. We are wired to favour “now” over “later”, we get decision fatigue, and we hate the feeling of loss. Automating savings sidesteps all three: money moves before your “treat brain” sees it, so you win by default.
If savings happen automatically, you don’t have to choose every month so default beats willpower. Progress feels good - watching named pots grow (holiday, wedding fund) builds a saver identity. Automation can backfire if your income fluctuates and you have a thin month. A £50 round-up won’t fund a £1,500 emergency. Set target-backed amounts (£125/month builds a £1,500 buffer in 12 months) and automation to a goal. Also a fixed round up can bite when income varies. Use percentage-based round ups (5% - 10% of income). Don’t set it and forget it – review each pot quarterly.

Soft saving is a smart start but it’s not a silver bullet.”
Automating savings through direct debits or round-up apps turns good intentions into good habits. It takes the emotion out of money decisions, which is half the battle when you’re trying to save consistently. But convenience can breed complacency if you ‘set and forget’ without reviewing what you’re actually building towards, you risk saving too softly and too slowly. The best approach is balance: use automation to build discipline, but check in regularly to make sure the amounts align with your real goals. Think of it as putting your savings on autopilot but you still need to be the pilot.

For those of us who aren't natural savers, apps such as Plum, Moneybox, Monzo and Chip offer clever ways to save with little effort. Features like auto-round-ups allow you to save small amounts automatically, without needing to remember to transfer money.

And with AI now able to analyse spending patterns, algorithms within these apps can accurately determine what you can afford to save without you needing to work it out for yourself.

Some apps offer other incentives, such as Premium-Bond-style prize draws, or a '52-Week Challenge', designed to help you set aside one additional pound per week and build £1.378 in a year.

The variety and novelty elements are important. It's all about finding a method that feels comfortable, but which nudges you into the good habits we know are vital for providing a financial safety net.

You'll probably need to look outside of the big high street banks for these tools though. It's the digital banks and finance apps that are leading innovation.