Welcome to the latest series at JosephSangl.com – “Investing Fundamentals” Investing is consistently rated by our audience as one of the most confusing topics they face. In this series, we are going to share some foundational principles that can really help you understand investing better!
Two Automate Your Investments
Make your investments automatic! You can set up your bank account to auto-draft money into different accounts like a 401k or a child’s 529 college-savings plan. This will prevent you from forgetting or trying to use the money elsewhere because you will never even notice it’s gone!
If you ever have to switch between banks then the auto-drafting will stop so you will need to get it set up at your new bank. I know from firsthand experience how hard it can be to write a check to my savings account and my daughter’s 529 college-savings plan. There are moments where you will think “Wow! I could really use this money elsewhere!”
If I had to write a check every month to my savings account or to my investment accounts, there is a high likelihood my investing plan would be seriously off-track. MAKE IT AUTOMATIC!
By making your investments automatic you will see your net worth increase every single month. Making investments automatic eliminates the possibility of using this money for splurge purchases. This is awesome for those of us who are highly susceptible to spend any and all extra money!
STEPS TO TAKE:
- Go to your bank and tell them you want to start auto-drafting money into an investment account such as a 401(k) or any retirement account or also a 529 college-savings plan. I also do this with my savings account!
- OXEN – The KEY to an Abundant Harvest In this book, Joe shares the steps you can take to maximize your money through investing!
- This book is also available via Amazon and Kindle.
NOTE: This post contributed by IWBNIN intern – Craig Fatt