In our modern way of life, saving money has never been easier yet most Americans don’t have enough saved to cover an unexpected $400 expense. When we look at our spending for the month, it can be easy to see where we are frivolously spending money. The easiest way to fix this problem is to make your financial life automatic.
The easiest place to start is your employer plan. On your benefits page at work there should be a section on benefits, then go to your 401(k). This is where you can set a % to be taken from every paycheck and invested in your plan. It’s mindlessly easy and you will forget you’re even doing it which is the best part about it.
Automate your emergency fund by setting a certain $ amount each day, week, or month to move into your savings. To make this as efficient as possible, build a budget! Take a hard look at how much you’re spending vs how much money you have leftover at the end of each month. If you’re positive, great!! Move that amount into savings each month by setting up a recurring transfer. If you’re negative at the end of each month, we have some work to do. Start to itemize a few expenses that are completely unnecessary and move that into savings.
Saving protects wealth and Investing builds wealth. After you have 3-6 months of living expenses in your savings, START INVESTING! In my recent post Is too much cash a bad thing? I talked about how inflation will destroy the value of cash, and the easiest way to beat inflation is investing. Most investment firms these days will allow you not only to automatically move money into the account but allows allow you to automatically invest that money into your investments. This way you can set it, forget it and watch your money go to work!!!
Make your life easy and automate your savings and investing. By forcing yourself to save and by having technology move your money you take the emotion out of saving. It will prevent you from massive unneeded spending and will teach you to live off a specific amount of money each month. I love this method and has helped me personally grow my net worth year over year.
I hope you found something valuable in the post today and feel free to comment with any questions. We would be happy to help you all out. Our mission at Strong Dollar is to make sure you have the tools to live a healthy lifestyle, build wealth, and become the best version of you!!
Hope you all have a great week!
As always: FITNESS + FINANCE = FREEDOM
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