Let's Learn Money!!!

Putting more into savings

Okay so we are finally using the set it and forget it approach and have money going into savings. If you are not doing this, read the other article here because the topic for today requires much more discipline than the automated approach.

Building wealth is a long, slow daunting task. It’s just like losing weight. You’re not going to notice anything happen overnight. The rule of thumb for losing weight is after about 8-12 weeks, you will start to notice something. After about 16 weeks, other people will start to notice.

Growing your wealth is a much slower process. You will not notice anything within the first several weeks. It is important to make this realization before beginning your journey. Slow and steady wins the race. Realize that if you remain disciplined, your wealth will grow tremendously over time. There are a number of different ways to go through the process, but we will work on them one at a time. Don’t ever just jump into the deep end. That works for some, but very few. We want the average person to build wealth, everybody can’t be Evel Knievel.

The approach: Log in every night!

Every week, I have a money date with myself to see how my finances are going. That is another story for another day. However, during the week, I have shorter check ups everyday to maintain my wealth building process. Remember, Rome wasn’t built in a day, but they laid bricks every day!

During these checks, I login to all of my bank accounts every night before bed. I have six bank accounts (and a couple more for my children). Two or three is good enough, but I can be extra sometimes. When I login to my accounts, I transfer some amount to my savings accounts. I have been doing this every night for years, in addition to my other savings tactics.

So at the end of every night, log into all of your checking accounts and move anything over $.01 to $9.99 to your savings account. If you feel this is too much, move everything to the nearest $5 or $1. If you have $748.29 and you feel taking the $8.29 is too much for you, then just move $3.29 to your savings account. Just make a habit of transferring money into savings everyday.

I do this every night, but now I am to the point of where this money goes into my children’s accounts. I have one spending account and one savings account for both of them (That’s another story). Even if you have less than $100 in the account, you can move all of the change over to your savings account. The point is to get yourself in the habit of saving money, putting money away. We will talk more about savings accounts and how much you all should be saving in another article.

As with automating your savings, the point is to get into the mindset of putting money aside for your future. As you see the money pile up, you will feel accomplished and want to build more. Discipline is Key!