Automate your savings and investments for consistency from "summary" of The Coffeehouse Investor by Bill Schultheis
One of the key principles that I emphasize is the importance of setting up automatic systems for your savings and investments. By automating these processes, you can ensure consistency in your financial planning without having to constantly monitor your accounts or remember to make manual contributions. Automating your savings and investments is all about making your financial planning as simple and effortless as possible. When you have automatic transfers set up to move money from your checking account to your savings or investment accounts on a regular basis, you remove the temptation to spend that money on impulse purchases. Consistency is the key to long-term success when it comes to building wealth and achieving your financial goals. By setting up automatic contributions to your savings and investment accounts, you establish a routine that helps you stay on track even when life gets busy or unpredictable. Another benefit of automating your savings and investments is that it helps you take advantage of the power of compounding. By consistently contributing to your accounts over time, you give your money more opportunity to grow and accumulate wealth through the power of compound interest. Automating your financial planning also helps you avoid emotional decision-making when it comes to your investments. By setting up automatic contributions to a diversified portfolio of low-cost index funds, you can take a hands-off approach to your investments and avoid the temptation to try to time the market or chase after hot stocks.- Automating your savings and investments is all about setting yourself up for long-term financial success by making smart, consistent choices that align with your goals and values. By simplifying your financial planning and removing the need for constant monitoring and decision-making, you can focus on living your life and enjoying the benefits of a secure financial future.
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