A Better Way to Manage Your Everyday Money - Book - Page 113
Automate your long-term savings
Consistently putting money aside in your long-term savings is essential to achieving as much
value growth as possible. Being consistent with deposits to your savings is much easier when
you are not involved in the process. Options for automatic monetary transactions let you put your
long-term savings on full automatic so that deposits to your investments happen whether or not
you remember.
Money that you put into an employer savings plan is contributed automatically by your employer
from your gross income. The deposits are made at the same time that you get your paycheck.
Sticking with such an automatic plan is easy because it's transparent.
The plans that you have for saving from your net income can also be automated. You will see the
money before it is added to your savings, but automatic contributions to your savings that happen
without you having to do anything helps keep you on track.
● Automatic Transfers - Banks and credit unions offer automatic transfers that you can set
up to transfer an amount of money from your checking account to another of your
accounts on a fixed schedule.
● Automatic Withdrawals - Financial institutions, such as investment brokers, will
automatically withdraw an amount of money from your checking account to your
investment account on an agreed upon schedule.
Both types of automatic long-term savings are added to your spreadsheet in PerNetFlow with
pseudo bills.
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