How much money are you saving for retirement each month? What about for a new home or large purchase? How about college for the kids? Are you meeting your savings goals, or is that something you just hope to get around to doing sometime soon?
Personally, I like to make any sort of savings and investing decisions as simple as possible and reduce any steps that might keep me from my goals.
If I have to consciously remember (and then actually perform an action) each week or month in order to set aside funds, there is a reasonable chance that I will forget to do it or procrastinate my way into missing my chance.
That is why I like to make as much of my savings as possible into automatic transactions. Ones I don’t even need to think about each month.
I have had investment accounts at Robinhood, E*Trade and Vanguard, and all of them will allow some form of automatic deposits and can even automatically invest into pre-determined (by you) funds. Typically, these allow weekly or monthly auto-scheduled transfers.
Another nifty company that automates your savings and provides some enticing features is Acorns. What sets Acorns apart is the ability to make scheduled daily contributions to your investment account, and there is a feature that “rounds up” any purchases you make with connected debit cards, credit cards or bank accounts and transfers those extra pennies into your investment account as well.
I really like the idea of my spare change automatically being saved and invested. Acorns has a referral program where you can get a $5.00 credit to your account if you use this link: https://www.acorns.com/invite/6G23JH (Full disclosure, I will get $5.00 also).
But I am not just recommending them to get the $5. I truly think it is valuable to automate your savings, and Acorns happens to be a convenient and fun way to save for the future. I have been using them for many years now and love the service.
However, you make it happen, make sure to put your savings on autopilot and avoid any possibility of missing your chance to grow a fortune!
Timothy Key spent over 26 years in the fire service as a firefighter/paramedic and various fire chief management roles. He firmly believes that bad managers destroy more than companies, and good managers create a passion that is contagious. Compassion, grace and gratitude drive the world; or at least they should. Follow me on Instagram, Facebook, and Twitter, and join the mail list.
Originally published at https://timothykey.com on February 17, 2021.