Automate savings from "summary" of The Dumb Things Smart People Do with Their Money by Jill Schlesinger
Automating savings is a simple concept that can have a profound impact on your financial well-being. It involves setting up a system that automatically transfers a portion of your income into a savings or investment account without you having to actively think about it. This method takes advantage of the fact that most people are more likely to save money if it happens automatically, rather than relying on willpower to make manual transfers. By automating your savings, you remove the temptation to spend the money before you have a chance to save it. This can be especially useful for those who struggle with impulse purchases or find it difficult to stick to a budget. With automation, you can ensure that a portion of your earnings goes towards building your savings without having to actively resist the urge to splurge. Setting up automatic transfers is a straightforward process that can usually be done through your bank or financial institution's online portal. You can choose the amount you want to save and the frequency of the transfers, such as every paycheck or once a month. This flexibility allows you to tailor your savings plan to your specific financial goals and circumstances. Automating savings can also help you build good financial habits over time. By consistently saving a portion of your income, you can start to see progress towards your goals and feel more in control of your finances. This positive reinforcement can motivate you to continue saving and make it a regular part of your financial routine. In addition to the practical benefits of automating savings, this method can also provide peace of mind. Knowing that you have a financial safety net in place can reduce stress and anxiety about unexpected expenses or emergencies. By making saving a priority through automation, you can create a more secure financial future for yourself and your loved ones.- Automating savings is a powerful tool that can help you take control of your financial life and work towards your long-term goals. By simplifying the saving process and removing barriers to building your nest egg, you can set yourself up for financial success and achieve greater peace of mind.
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