Comments on: 6 Advantages Of Automatic Saving And Investing

By: Weekend reading: Real estate realities

Weekend reading: Real estate realities — Sat, 13 Feb 2010 10:42:05 +0000

[...] 6 advantages of automatic saving – Bible Money Matters [...]

By: Craig

Craig — Thu, 11 Feb 2010 16:03:13 +0000

I love things that make things easier for me, and automatic savings does just that. I don't have to worry about it, I never see it as a loss and keeps things simple and stress free for me. Craig´s last post ..Interview about BudgetPulse with Mr. CC

By: Daddy Paul

Daddy Paul — Wed, 10 Feb 2010 23:56:36 +0000

Automatic savings is a great way to go. If you have to write a check it will always wait until next month. Nine months later you saved nothing. Daddy Paul´s last post ..The best small cap mutual funds

By: Peter Anderson

Peter Anderson — Wed, 10 Feb 2010 19:20:25 +0000

Yeah, i’m not sure I’d ever set up automatic bill pay unless it was something like an insurance premium or something along those lines. Cable bills, credit cards and other bills like that i like to double check – like you mention.

By: Darren

Darren — Wed, 10 Feb 2010 19:12:49 +0000

Good point about the government automatically taking out taxes. Like a few other commenters, I automatically invest in my 401k through payroll deductions. It’s easy to set up, and since I don’t see it on my paycheck, I can’t spend it! This forces me to plan my budget around that net amount in my check, so that I’m not tempted to spend the money if it wasn’t in my 401k.

However, when investing in my roth IRA in addition to the 401k, I haven’t set up automatic contributions yet. This is because I contribute a high percentage of my salary to my 401k, so that the net amount of my check is relatively small. Therefore, although I plan my IRA contributions around my other expenses, I still make it a point to max out my contributions to both accounts each year.

@Peter – I personally don’t think it’s a good idea to set up automatic bill pay. For instance, with credit card statements, I like to check the charges to make sure they’re all legitimate and that the totals add up. Besides, it doesn’t take that long to check, and then I can still pay the bill electronically. Like Lakita said, computers do make mistakes sometimes.
Darren´s last post ..The Laziest Way To Start Investing Successfully

By: Deacon Bradley

Deacon Bradley — Wed, 10 Feb 2010 19:05:13 +0000

I prefer to manually maintain my savings (retirement, investing, savings) each month. Getting paid is a fun event for me because I enjoy funding the 'saving' and 'giving' categories based on my written plan. Doing this each month ensures I'm intentional about it which positively impacts your character and behavior (my post relating). Plus, there's something fun about writing big checks to myself! Deacon Bradley´s last post ..Big Screens and Benjamins; How the Rich Live

By: Monevator

Monevator — Wed, 10 Feb 2010 18:40:03 +0000

Another great thing about automatic savings is it’s easier to save when you get a rise. You’ll find it’s no hardship to put say 50% of the extra rise on to the 15%, say, you’re already saving. You’ll still have more money to spend than before!

5 to ten years like this and you can find yourself socking away a really meaningful amount of money.

By: ParisGirl111

ParisGirl111 — Wed, 10 Feb 2010 15:18:21 +0000

I have discovered the best way to do automatic savings is using my 401K at work and setting up individual savings accounts at ING. Then, I just have the money automatically withdrawn from my account on the same day every month, like a bill. I don’t have to think about saving at all because it is done for me.

By: Peter Anderson

Peter Anderson — Wed, 10 Feb 2010 14:34:21 +0000

For some reason I’ve always been hesitant to set up automatic anything. Whether it’s auto bill pay, auto savings or what have you. I’m not sure why it is, but I do know that it probably needs to change if I want to continue getting ahead..

Great post!

By: Lakita (PFJourney)

Lakita (PFJourney) — Wed, 10 Feb 2010 14:28:01 +0000

I am a fan of automatic savings and investing. Both happen through direct deposit so I don’t see it eventhough it is a part of my net pay. I also have the savings account at a different bank than my regular checking so I don’t log in and see it on a regular basis. However I do check from time to time to make sure everything stays on track….though rare, computers do make mistakes.

I’m more passive with the auto investing….I may look at that quarterly just to ensure everything is in line. I’ve taken a “set it and forget it” approach.