That title may sound extremely clickbaity but this is just the truth from my experience and I’m happy to share that with you. Behavior drives our daily habits, and nobody ever really tries to refute that aspect of life, we just accept it. For example: You may wake up every morning, take a shower, drink coffee, then get dressed and drive to work. It happens essentially with your body and mind on autopilot. The effort in hindsight is minimal because that is just what you do every day right?
WHAT IF I TOLD YOU WEALTH BUILDING COULD WORK THE SAME WAY?
Not with any magic mind trick or drastic behavior change, but with the power of modern technology and 15-20 minutes of your time to set it up. No, you won’t be able to amass a giant pile of cash Breaking Bad style in record time… But you will be able to save/invest more than you ever would have otherwise by deploying these tactics today.
Automate everything, take your conscious thought out of the equation in the same way you do with the morning autopilot routine. In many aspects of life this is hard to do, for example: If I told you to just automatically wake up every morning and eat a healthy meal – then exercise and finish your normal routine, that would be hard and 99.9% of people wouldn’t last for more than a week. The reason for that is you have to endure the “pain of change” every single morning until it becomes automatic. THAT is the beauty of this personal finance life hack, you only need to do it as a one time setup and let it roll.
What exactly should you do? That is up to you and your opinion/financial situation. Nobody in a blog setting can tell you EXACTLY what to do because personal finance is just that – “Personal”. But I can tell you exactly what I did that has worked well for our life.
I opened a Betterment account – Wealthfront account – and an Acorns account, all at the same time and setup automated deposits to occur every Wednesday. No special reason for Wednesday to be the day, studies have long shown no market day better than the next in the long run but that is the day I chose. With this simple step I automated good behavior to happen on a weekly basis no matter what else was going on in my life. I’m never “too busy” to invest and it takes the “I’ll get around to it” excuse out of the equation as well. There is no reason for you to open as many of these as I have, this was done to have a real life comparison of all platforms that were of interest so that in a few years returns can be shared on the blog. You would do fine with any one or two of these, and it’s important to note these are taxable accounts. In most cases it doesn’t make sense to use these until you max out your pre-tax options such as a 401k/SEP/Roth/TSP/Etc…
This was the gateway of automation for me and I now automate transfers to our savings account monthly, a state sponsored 529 for our children’s college, and much much more. Technology makes our lives easier on a daily basis, half of you are likely reading this on a smart phone or tablet which is a great example of that. Good behavior is obvious, if you made it to this site then it’s likely that you already know the path to wealth is paved on a long road of steady investments. With that part being a no brainer let’s automate the rest and enjoy the fruits of your labor without constant/ongoing labor!
Disclaimer: This article contains affiliate links, if you click on those to sign up the author will benefit. As of today (5/22/2018) we do personally actively use all the platforms mentioned and solely endorse them due to that fact.
Let’s do the math
Calculate your mortgage or work with the compound interest to see what it can do to expedite your wealth building.