Treat Savings Like a Tax to Make Sure You Do It
Nobody likes taxes, but most of us rarely send them either. This is because for most full-time employees, taxes are immediately deducted from their paychecks. Try the same strategy with your savings.
If you’re using direct deposit, your employer can probably split your salary across multiple accounts. Otherwise, most banks and investment instruments allow you to set up automatic withdrawals. Either way, having an automatic deduction that you treat as important as your taxes will make it less likely that you will cheat on him. As the personal finance blog Free From Broke explains:
When does the government take taxes? Every time you get paid automatically. The entire system is set up so that you or them don’t need to blink an eye. Think about it. When was the last time you worried about having to send taxes after you get paid? You didn’t. It was actually very easy (apart from how much they charge).
For the same reason, it’s a good idea to contribute to your 401 (k) or other employer’s investment account, as you can automatically deduct money and never waste it. Be sure to discuss your options with your employer, as you can adjust the amount of money withheld based on your salary, which can be very helpful if it fluctuates.
How to Save Your Savings (just like the government does with your money) | No Busting Through Rockstar Finance