Separate & Automate Your Savings. A How-To Step By Step.
Do you want to start saving money? Then take yourself out of the equation. Make it an automatic thing every month that you don’t even think about. The absolute best way for you to start saving money is by separating and automating your savings. Separate, meaning you put your savings in a place that is hard to get to so you are not tempted to touch it! And automate, meaning you set up the technology available to you to work for you to transfer and invest money without a second thought!
Follow The Following
What you will find in the following post is a classic wealth-building strategy. Step by step, little by little separating and automating your savings will help you to start investing your money at every paycheck. You don’t have to think, you don’t have to act, and you don’t even have to have the time from here on out! All you need is to do is follow these steps and you will start saving a portion of your paycheck every paycheck!
- Go to Vanguard.com
- Log in
- Top menu bar hover over “My Account”
- Go to “Account Maintenance”
- Go to “Automatic Investment”
- Choose the desired fund you want to invest in.
- Choose the dates, amount and frequency you want.
- I recommend every paycheck place enough in your Roth to max it out yearly!
- Not sure what to place in your Roth? See THIS POST where I detail a great strategy.
Gather Little By Little
He who gathers money little by little makes it grow. The trick is to learn the gathering technique. Here is the gist, as soon as that money hits your account, a portion of it should go directly to paying you first. Put it in your Roth! Start with something small, you can do without $211.53 per paycheck. The following is how I came up with that number and why you too should put $211.53 per pay period to your Roth IRA.
$211.53 is a Great Starting Point
Let’s say you’re paid every two weeks, which means you receive 26 paychecks in a year. $5,500 is the max you can place in a Roth yearly, and that number divided by 26 pay periods equals $211.53 per pay cycle. If you are maxing out a spouse’s account, which you can and should do, then repeat steps 1-8 for them!
That was painless. Good on you for taking action! Keep grinding. First time to the blog? Check out my Welcome Page.
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Life of FI MD exists to get as many people as possible interested in pursuing Financial Independence and to get those who are already on the path there a little faster. As a young physician FI is a far away and lofty goal, but it is not about the destination, around here on this site it is all about the journey.
If you are one who has felt like your financial situation has limited your life options, you should join the blog as you are in good company. Financial independence is a completely obtainable goal no matter where you are at, but the journey needs to begin now because it boils down to two simple things: an understanding of the math behind financial independence and a lifestyle supporting the math.
Truthfully, whether or not you follow the blog is irrelevant, what is more, important is what you will do with the information contained here within. I invite you to pursue a Life Of FI with me.
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