Investing! This is consistently given as one of the most confusing topics individuals face. In this series, I wanted to share some basic investing fundamentals. My goal is to help you understand this topic better and walk away with practical steps.
STEP ONE Evaluate & Diversify
STEP TWO Automate Your Investments
Make your investments automatic! Your bank account can be set up to auto draft money into different investment plans (401k or a child’s 529 college-savings plan).
When your investments are automated, it prevents you from forgetting to transfer money each month. It also eliminates the possibility of using that money for splurge purchases. This is awesome for those of us who are highly susceptible to spend any and all extra money! You’ll also see your net worth increase every single month.
One thing to note, if you have to ever switch banks, you’ll need to set up the auto-drafting again at your new bank. I would try to do this ASAP! I know from firsthand experience how hard it can be to write a check to your savings account or 529 college-savings plan when the auto-drafting isn’t set up. 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 investments accounts, there is a good chance that my investing plan would be seriously off-track. Make it automatic!!
– Set up auto-drafting with your bank (via phone or online) and start automating your investment account(s) , such as a 401k, retirement account, or 529 college-savings plan.
– Recommended Resource ==> OXEN: The Key to an Abundant Harvest – Learn how to maximize your money through investing