Over the years, I’ve observed a few things about people who are good savers. It’s not because they are the most frugal, have a budget that accounts for every single penny or make high salaries. Their strategy is simple: Make it automatic.
Putting your savings on autopilot simply means that you have set up a recurring amount to be deducted from your paycheck or checking account every pay period or per month. When I first started automating my finances I set up what Jacquette Timmons, founder of Sterling Investment Management, refers to as a “no-matter-what savings strategy.” I committed to saving a fixed-amount regardless of how my financial life changed. The biweekly savings started as low as $50 per month until I was able to work my way up to saving 15%. Odds are, you won’t even miss the money.
“You must create a savings strategy so that you can back your actions into a goal,” says Timmons. “If you don’t have a strategy you are less likely to save and you diminish the probability of meeting your goals in the time frame you outlined. You’ll say, ‘I’ll do it next time’ and then a year from now, you’ll realize you haven’t met your savings goal.”
How many of you can relate to financial procrastination? No need to be bashful here; we’re in this together and we’ll take it one week at a time until you too can say, “I follow Wealth for Life Principle No. 4; I save at least 10 percent of my income.”
Read more: Black Enterprise
Photo Credit: Femalepreneur Lounge