On November 2019, I set three financial goals:

1. Save $14,519 into my 401(k).
2. Save $7,000 by the end of 2021.
3. Save $2,800 into my savings account by the end of 2021.

As of November 2020 (I still got one more month!), here is how much I’ve saved:

1. $12,913 of $14,519 contributed to my 401(k). 
2. $5,774.72 of $7,000 saved.
3. $1,307.27 of $2,2800 saved.

Although I am not on track to reaching any of my goals, I am pretty darn close! 

So, how did I do it?

The Power of Automation

The key is automation. 

But first and foremost, you want to choose financial goals that are realistic. You can read more about that in this post here.

So, what is automation?

Automation is the act of setting up direct deposits that automatically send money into your bank accounts each paycheck. 

This way, you don’t have to manually send money into your bank accounts. Instead, when you set up automatic deposits, a certain amount of money is automatically deposited into your bank account.

This works great because:

1. Money goes into your bank account each month.
2. You are setting up good financial habits.
3. It’s hassle free because you don’t have to do it yourself.

And much more!

So, how Do I Set it Up?

You can usually set up direct deposits through your employer. 

I set mine through the same portal that I used to track my work hours.

It depends and you will need to ask your boss or HR department to set it up.

Why Should I Set Up Automatic Deposit?

If you want to save money, this is the way to go. 

You don’t see the money so it doesn’t tempt you to do something with it.

Instead, you can rest assured that the money will go into your savings. Just make sure your routing number and bank account number are correct! 

Afterall, you wouldn’t want a stranger receiving a chunk of your paycheck.

In the example above, I have three different bank accounts for each of my three goals. Each paycheck, I set aside a certain amount that gets automatically deposited into my banking account.

I was able to save the above by setting aside:

1. $552.60 per paycheck into my 401(k)
2. $250 per paycheck into my savings #1.
3. $100 per paycheck into my savings #2.

If you haven’t already, I encourage you to do so now!

Are you using the power of automation? How’s your journey going? I’d love to know, so comment below!