Having a Hard Time Saving and Investing? Let Me Make It Super Easy!!!

After my divorce from the gambling husband and after I paid the outrageous tax bills, my nest egg was almost depleted. But I had a few properties that paid rent every month.

One of the first things I did, when that rent came in, before I spent a cent, I immediately put a portion of it into savings. Otherwise, I knew I’d spend it all.

And I did it automatically. It was so simple. I filled out a form and the bank automatically transferred money from my checking account to savings. The amount was small at first, but it added up quickly. I didn’t even have to think about it.

Automating gave me discipline without having to work at it. It’s easy to say that you’ll move money monthly into savings. In practice, however, it just doesn’t happen. You forget. You overspend, You have a hundred excuses.

But by automating, you don’t miss what you don’t see. This was the beginning of my creating really good financial habits—habits I still practice today.

Later, as my savings accumulated, I automated my investing which took the emotion out of the equation. It’s called Dollar Cost Averaging. Whether the market went up or down, I kept buying.

Investing automatically reduces the risk of losing a large lump sum in a bad market. And reduces costs because you purchase fewer shares when stocks are expensive and more when they’re cheaper.

If you have a 401K, your employer will transfer a specific amount from your paycheck to the 401(k) or 403(b).

If you have a personal IRA or investments outside retirement, say through, Schwab, Vanguard, Fidelity or Betterment, you can have money automatically transferred from your checking account to those investment accounts.

If you’ve got more than one savings goal—say, building your emergency fund, buying a house and taking a vacation, you can set up more than one savings account.

I always recommend having at least 2 types of savings. An Untouchable account for emergencies only. And a Touchable for fun stuff and daily expenses.

If you’re following a budget, treat the savings as an automated, regular “expense.”

What’s worked for you to make savings and/or investing automatic? Leave me a comment below.

Comments & Feedback

  • Lisa

    Automating savings is an excellent idea. Americans are so good at simplifying things and making things practical for everyone. Take advantage of it!

    My trading account is linked to my bank account. But I have to say that writing ✍️ realistic, financial goals out as a New Years resolution works for me. I have a goal for at least my Superannuation, cash savings and equity stock. Depending on what’s going on in the market, I prioritize these at different times of the year and it feels so satisfying crossing them all off at the end of the year!

    The feeling behind the goals makes it automatic for me. I see it as a major part of my self care just like going to get my teeth 🦷 cleaned three times a year. I never want to be completely dependent on a husband, my family, a job, credit cards or government welfare. And I never want all my teeth to fall out before I turn 85! I want to be able to occasionally take care of people who have taken care of me, or are going through trouble and to give back to people who have gifted me a few times. I know what my special pleasures are in life and I want to indulge! This makes it all automated for me.

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Meet Barbara Huson

When a devastating financial crisis rocked her world, Barbara Huson knew she had to get smart about money… and she did. Now, she wants to empower every women to take charge of their money and take charge of their lives! She’s doing just that with her best-selling books, life changing retreats and private financial coaching.

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