, bills, and discretionary money. Essentially, this strategy involves automating savings to match up with paydays, and moving that money out of a checking account before you even have a chance to use it.
"I got my bi-weekly paycheck, which was the same amount every two weeks. That made it very simple to sit back and know exactly what was coming in every month," Shah says. He loaded up his high-yield savings accounts to save for an emergency fund and other goals.I Will Teach You To Be Rich ." He writes that this system can help prevent problems before they start. "People sigh and say, 'I need to buckle down and save more' . That's playing defense. Instead, we're going to play offense," he writes. Automating deposits to his investment accounts means he can ride out market volatilityFor Shah, this meant automatically directing money from each paycheck to his 401 and other retirement and brokerage accounts, just as he was doing with his savings.
"This strategy took the guesswork out of the equation. I wasn't sitting there trying to time the market," Shah said. "The strategy forced me to do the same thing over and over again."
ramit Big fan of ramit
ramit The pay yourself first strategy: “'People sigh and say, 'I need to buckle down and save more' (though they almost never do). That's playing defense. Instead, we're going to play offense,' he writes.” Play offense, I love it.