By Carrie Smith of Careful Cents
Are you finally serious about investing for your future? Is saving more money towards retirement one of your New Year’s resolutions?
Awesome! That’s a really smart goal. But have you thought about how you plan to achieve it? Maybe you’re too busy to stop and think about the future. Or maybe you’re too scared to even think about where to begin.
Not to worry, I’ve been in the same position. But I found an easy strategy that helped me build wealth without breaking a sweat.
Simplify Your Goal
When I first started saving money into my Roth IRA, I had no idea where to start. As a young adult (or older adult) it can be both overwhelming and confusing, when it comes to saving money for the future.
The best way to start is a little at a time, day by day, month by month. Simplify your savings goals into small bite sized actions every month, and you’ll quickly notice, the feeling of being overwhelmed dies down.
Surprisingly, you’ll actually look forward to starting a Roth IRA or investing account. Simply because you’ve made your goals more manageable, you’re now empowered and motivated to take control of your future.
Automate Your Savings
So, what’s the easiest way to build wealth without thinking? Automate your savings! Talk to your bank or brokerage firm – or log into your account online – and sign up for automatic savings transfer from your checking account to your retirement fund.
Better yet, ask your employer if they offer direct deposit to several accounts and have your contributions automatically taken out of your paycheck. This is very similar to what a company does when they have a 401(k) plan.
Build Wealth Without Thinking
A recent study shows that employees who are required to opt-out of their retirement plan contributions (versus opting in), are nearly 100% more likely to start saving money towards their retirement goals.
Basically this shows that if we “trick” ourselves, through the process of automating our retirement contributions, we’ll have a much higher rate of saving money and therefore build wealth faster.
It’s like the saying goes, “you set it and forget it”. Then next thing you know, after socking away money without thinking, you’ll discover that your wealth has tremendously increased. Don’t let another year pass you by where you procrastinate putting your wealth and financial well-being first.
Start small, and simplify your savings by automatically allocating $25 – $50 a month towards your retirement goals. Before you know it, you’ll be on your way to building wealth without even thinking!
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