"Putting your savings on auto-pilot."
"Pay yourself first."
Such common savings are repeated so often because they're so true. One of the easiest ways to accomplish automatic savings is through a workplace retirement program such as a 401(k).
But you can go farther. You can create an automatic investment program (AIP) with virtually any bank, discount brokerage, or other financial services firm. An AIP replicates the same automation featured by a 401(k): without any ongoing conscious effort on your part, you move a certain amount of money into savings at an interval you set. For example, you could arrange to move $50 every week from your checking account to your savings account. Another possibility: moving $400 every month to your Roth IRA.
By establishing automatic investment programs in your life you benefit not only from advantageous dollar cost averaging, but also the knowledge that, even if you spend every last dollar in your checking account, you're still saving something.
"Pay yourself first."
Such common savings are repeated so often because they're so true. One of the easiest ways to accomplish automatic savings is through a workplace retirement program such as a 401(k).
But you can go farther. You can create an automatic investment program (AIP) with virtually any bank, discount brokerage, or other financial services firm. An AIP replicates the same automation featured by a 401(k): without any ongoing conscious effort on your part, you move a certain amount of money into savings at an interval you set. For example, you could arrange to move $50 every week from your checking account to your savings account. Another possibility: moving $400 every month to your Roth IRA.
By establishing automatic investment programs in your life you benefit not only from advantageous dollar cost averaging, but also the knowledge that, even if you spend every last dollar in your checking account, you're still saving something.
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