make it Automated

mtsen · #1 (**permalink**) 10-09-2009, 08:32 AM

1st of all, I am quite new in this forum so I would apologize if I post something in the wrong place ...

Everyone here would know that Saving First is an important concept. As in once you get your income, you should save a portion aside before anything else. That way, you always save something before you have a chance to use it all.

I just want to emphasize that is NOT enough anymore in 21st century. We should save first AUTOMATICALLY.

Psychologically we always want to spend money for our own good, setting an automated system to keep away such money also PSYCHOLOGICALLY makes us forget all about it.

Hence practically it is much more effective ....

FamilyPapi · #2 (**permalink**) 10-15-2009, 09:09 PM

Agree with making it automated - I think it's a beautiful thing. The best part about it though is you only have to do it once. Then forget and be on your merry way.

The other thing I suggest is diversify - so automatically send money to different accounts. Each account with a specific goal...for example you could have a house account, vacation account, dream account, etc.

It actually works because all you see and use is what goes into your primary checking account for the bills and maybe a play/entertainment account for fun.