- Set up an automated monthly transfer (called and ACH Transfer) that goes from your checking account or from your paycheck into...
- This monthly transfer goes into an account you can't access easily (no checkbook or debit card attached to it). It could be savings account, your employer’s retirement plan, an IRA, or a brokerage account.
- Begin with a small amount: Maybe you can only afford $15—$30 each month, that’s fine. Contribute more if you can. Just make it an automated transfer (so you don’t have to think about it).
- Go out and live your life.
- After 6 months, increase the monthly amount a bit, by $5—$10. More if you can.
- Go live your life.
- Every 6 months, ratchet up the monthly amount you're putting away.
- Doing it this way, you'll adjust your spending and lifestyle in such a way that you won’t feel the pinch of saving.
- When you get to 10% of your income, you can ease off the increases. Or keep going, but don't lock it all up, you'll need some access to that money sometime!
If you think you can’t save money, try the gradual approach. It works! Just stick with it, month after month, year after year. But be warned. Setting this up will require you to speak with someone who works at a bank, credit union, or brokerage firm. Don’t worry. You’ll find someone you can stand talking to about this. Just see it through. It will work.