There are a plethora of resources available and if you’re willing to take advantage of these you can help put your wealth building plan on autopilot.
Here’s how to get started.
Know Where Your Money is Going
Budgets are great. But I’m also a believer that you don’t have to follow a strict written budget as long as you’re aware of where you money is going.
If you haven’t done this recently sit down and take a look at your spending over the past three months. If something has slipped through the cracks take a look at it and clean it up.
The first step in any real wealth building plan is to know where your money is going.
Put Your Bills on Auto Pay
Accidentally paying a bill late is something that’s happened to most of us. Nobody wants to incur late fees from forgetting about a certain bill but it’s something that happens.
You can prevent this from happening by placing your bills on auto pay. Once you set up your system it’s a good idea to keep a buffer in your checking account and to log into your online banking at least once per week so you can record the transactions.
Automatically Invest Money Each Month
Another thing you should do is look to leverage your savings by investing money each and every month. You can do this in a number of ways but one of the most popular is to simply have a certain amount of money put into your investment account each month.
You can take this a step further by increasing these contributions by a certain percentage each year. This way your money will continue to build without much effort on your part. You can also look into robo-advisors to make sure your investments are aligned to your current financial goals and risk tolerance.
Make Money Management Easy
You reduce your risk of paying bills late or not investing by putting the important parts of your wealth building systems on autopilot.
Yes, you still need to do things like monitor your expenses and check in on your investments from time to time but by creating a system that does the heavy lifting for you you’ll be able to more consistently grow your money.
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here and here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.