Set it! So tomorrow you can forget it
Investing works because of compounding (the 8th wonder of the world according to Einstein).
- Put away $100/month for 30 years and you get $36,000
- Invest $100/month for 30 years and you get $197,392 🤯
- Assuming a 10% average annual return, which is possible based on the funds we researched in our previous post – make your investment.
So the habit of investing every month and letting it compound matters.
And the best way to build a habit and do something consistently is to make it simple. Shoutout to Atomic Habits!
By automating your investments, you build a system that requires less work so you will keep doing it. That way, your money earns money for you and you can get to the Mai Tai sipping in Hawaii like we said on Day 1 😁.
Here are some ways how we automate it:
- Sign up for your employer-sponsored retirement account, i.e. 401k and set your contribution.
- Once you pick your funds, the % is deducted from your paycheck automatically and invested into the funds you pick.
- Automate your Pay Yourself First number to transfer from your checking to your savings & investments accounts.
- Once the transfer happens, invest the money into the funds you’ve picked for your IRA and/or taxable brokerage accounts.
- Some brokerages may allow you to automate the investment as well, but some may not. So after your automatic transfer, you will have to go in and pick your investments.
- Invest with a robo-advisor. Wealthfront, Betterment, Ellevest, M1 Capital are all good options to check out!
- Full transparency, I use and love Wealthfront (the Wealthfront link above is a referral link), but you should see which one is right for you.
Stick around and in our next post we’ll show you what we do (or don’t do) after we invest in something. It may get emotional 😉.
You got this!
And if you have questions, you got us! DM us on @buildwealthlikeabadass or email us at buildwealthlikeabadass@gmail.com!
Cheers ✌🏽,
Build Wealth Like a Badass
This is meant to be educational content only and should not be taken as investment advice. Please invest at your own discretion and risk. Please contact licensed investment or tax professionals if you are seeking advice.
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