This staple of personal financial advice is the cornerstone of success. The basic premise is this: When investing for your future, setup automatic withdrawals from your paycheck or bank accounts. Just like your utility bill or car payment, the money will be taken out before you really have access to it. In the meantime, it begins to compound and you don’t miss the money. (As humans, we are remarkably adaptable. If you don’t have the cash, you’ll find a way to get by. Sure, you may own a few less pairs of shoes or a couple less season subscriptions on iTunes, but you’ll make due and after awhile, likely not notice.)
This strategy has been key to the success of some of my closest friends and family members. One person in particular with whom I am close literally worked full time and had no mattress or groceries, yet now has investment capital that, adjusted for her age, will result in substantial wealth given enough time parked in decent assets. It may be difficult in the short-term, but long-term it’s worth it.
For more information, read Pay Yourself First: One of the Most Effective Strategies for Attaining Your Dreams and Goals.
