Automate your savings from "summary" of The Automatic Millionaire Workbook by David Bach
The key to building wealth is to make saving automatic. This means setting up a system where a portion of your income is automatically transferred to your savings or investment accounts before you even have a chance to spend it. By automating your savings, you remove the temptation to spend the money instead of saving it. This simple strategy is incredibly powerful because it takes willpower out of the equation. Instead of relying on your self-control to save money, you rely on a system that works for you in the background. To automate your savings, start by setting up an automatic transfer from your checking account to your savings account every time you get paid. You can specify a fixed amount or a percentage of your income to be transferred. This way, you are consistently saving a portion of your earnings without having to think about it. Over time, these small, regular contributions will add up and grow into a significant sum of money. Another way to automate your savings is to enroll in your company's 401(k) or similar retirement plan. These plans allow you to contribute a portion of your pre-tax income to your retirement savings account. The contributions are deducted from your paycheck before you receive it, making saving for retirement effortless. Additionally, many employers offer a matching contribution, which is essentially free money that you can use to accelerate your retirement savings. In addition to automating your savings, it's important to review your savings and investment accounts regularly. Check your account balances, review your contributions, and make adjustments as needed. By monitoring your progress, you can ensure that you are on track to reach your financial goals. If you encounter any obstacles or setbacks, don't get discouraged. Stay committed to your savings plan and make any necessary changes to keep moving forward.- Automating your savings is a simple yet powerful way to build wealth over time. By setting up automatic transfers and contributions, you can consistently save money without having to rely on willpower. This strategy allows you to make saving a priority and take control of your financial future. Start automating your savings today and watch your wealth grow effortlessly.
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