Personal Finance Challenge #47: Put 10% Directly Into Savings

One of the best things I ever did in my life was to have my employer direct deposit 10% of my check into savings. Besides paying down my debt, this was the single biggest thing I ever did to improve my financial situation.

I can tell you that there is nothing like looking at your savings months and years later wondering where all the money came from.

Even better, is knowing that if something happens to you, some drastic event where you need a lot of cash quick, the money will be there waiting for you.

It is a good feeling, one of the best in the world.

Perhaps you have a 401k that is automatically withdrawn from your paycheck. Doesn’t it feel good to have that nest egg increase every year (well maybe not every year…). Why not put some money automatically into a savings account as well? Maybe even the bond market if you want a better, yet guaranteed return.

Perhaps you have insurance taken out of your check too. Why not savings?

Perhaps you have taxes taken out of your check too. (A lot of things come out of your check before you even see them right?) Why not your savings too?

Perhaps you have never saved a penny in your life. There is no better time to start then now.

At the end of the day, with all the other things that come out of your paycheck, there is no good reason at all to NOT have some go directly to your savings.

It doesn’t really matter how good you are with money, or how much willpower you have. If you don’t immediately allocate money for certain things, you will waste a lot of it.

And money is certainly not a thing to waste…

This is our 47th challenge in The Personal Finance Challenge Series…

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  1. […] Way 45. The ERE (Early Retirement Extreme) Way by Jacob Fisker 46. You Are Always In Control 47. Put 10% Directly Into Savings 48. Invest In Knowledge 49. Invest In Health 50. Invest In People 51. Make It Easy On Yourself 52. […]