Don’t be afraid, just because automation is a big word doesn’t mean it’s complicated. Actually, the opposite. Once you get your good habits set up for automation, it’s very simple to keep doing the right thing.
If you want to get ahead without doing a lot of work, automation is the best way to do it. I literally grew my Roth IRA to $20,000 with only $50 per month just by automating my savings. You can do even better if you get started.
What is Automation
I feel like this is pretty self-explanatory, but automating really just means you set things up so it happens without any action on your part. This is great if you don’t have a lot of time or energy to mess with all this “complicated” money stuff.
I mean, between waking up early for PT, driving into base (because housing on base sucks), and all the other bullshit keeping you at work late, there’s not much time to do all this other important financial stuff. This is why putting your investing on autopilot is so important. You only have to set things up once and then let time take care of the rest.
Emphasize Healthy Habits
The idea here is to make sure the good things happen automatically. Investing in your Roth IRA or TSP will keep you building toward your future. You won’t need to worry about having money later.
If you don’t save and invest, you’ll keep wondering why you’re working your ass off and never have anything left to show for it. You work too hard not to have something left over at the end of the month. This is why you need to get your money for savings and investments out of your bank account before you have a chance to spend it.
Eliminate Bad Habits
Automation can work against you if you’re not careful. Big companies know the power of automation. That’s why everyone and their mother has a subscription service – people don’t cancel once they sign up (remember that “free” trial?).
If you’re not careful, you’ll end up with a bunch of subscriptions you’re not really using anymore. I recently did a scrub of my subscriptions and found $35.99 per month I cut in subscriptions. That’s $431.88 per year!
If you’re thinking you don’t have any money you can put toward saving and investing, I bet you do. You can get started investing for as little as $50 per month. Find something you can cancel, and then start an automatic savings or investing plan with that money.
Thrift Savings Plan
I love the Thrift Savings Plan (TSP)! There’s not a lot to it, but that’s my favorite part. It’s simple and it works. I’m a natural spender, so if I can get the money for my retirement savings set aside before I get my hands on it, that’s perfect!
You just have to set up your percentage of your base pay, set where you want it to be invested, and you’re off to the races! From there on out, you don’t have to do anything. You’ll be investing every single month.
As an enlisted service member, the TSP is one of the many benefits you have available to you. Also, if you’re in the Blended Retirement System (BRS), putting in enough to get the match is like getting 100% return on your first 5%. That’s free money!
Just Get Started!
If I could go back and do it again, I’d start myself off at 15% of my base pay going into my TSP. However, even if you feel like you can only put 5% in, start there. No matter what, just make sure you’re getting something saved for the future. Retirement will be here before you know it.
Just get started saving something. Automate your saving and investing so you never miss out on building for your future.