Saving is like trying to lose weight: we have the best intentions to do it but not usually the willpower. That’s why I love automatic investing. It’s like no-brainer saving. When I first introduced it to my husband he was worried that we were not going to be able to afford sending $25 to our savings account every pay period. But did he even notice that it had been already two pay periods since I had started doing it? No! And that’s one of the reasons I love using it.
- Automatic investing is convenient: The money is taken out before I even get my hands on it. So I never count it towards my budget.
- It also helps me stay consistent with my savings commitment. Because my budget has been adjusted downwards, I am not tempted to spend the money now and send in extra next time to make up for not saving this one time. But that time never comes.
- It can also help you save more. Once you have determined that you CAN live without those $25 every paycheck, then you start thinking about what you need to tweak this time in order to be able to do without another $25.
Whether it’s savings towards an emergency fund, a vacation, Christmas gifts, or retirement, automatic investing makes it easier for you to be able to reach these goals. Now, if someone could come up with a way to lose weight automatically. Then we would be set.
