Good Habits from J.D. @ Get Rich Slowly

I woke up this morning and got online (like I always do, a habit? yes, Good or Bad?) and found this great article from JD over at Get Rich Slowly.  I think it is a great example of spending less than you earn, and saving some money. A small habit that we can begin doing, that will make a tremendous difference in our lives. The principal that is the topic of conversation here is something that is hard for most people, but as J.D. mentions and as well as various others in the personal finance blogosphere… ( I Will Teach You to Get Rich by  Ramit Sethi) is that setting up an account to automatically withdraw the amount of money you want to save so you don’t have to see it, handle it, or touch it makes things a lot easier. It’s something that can be done over at ing direct.

What I’ve done in my own checking account is based upon when and how I get paid, then I set up the automatic drafts accordingly. Don’t forget to take into account your existing personal habits, what do you like to see when you log into your bank account, lots of cash sitting idle for that “just in case” emergency (then your emergency doesn’t come and you spend like it’s 1999) or you get one large check then you pay everything all at once. I know everyone has something different that works for them. So for myself I live my personal finance life week to week, once a week I have ing direct automatically withdraw the amount of money I’ve set up for the week . I like this because all of my money is not all gone at one time, and personally I like holding onto my money for as long as humanly possible.

Remember what makes someone who saves a lot different from someone who doesn’t is consistency. I know a lot of folks who set up the savings account and begin the automatic withdraws but then get discourage because they don’t see their $’s growing fast enough. Then they throw in the towel and say, “oh forget it, it’s not making any difference”. If this is you, please don’t stop saving. In a year, two, three, your money will begin to grow quicker than you imagined. That fact along with the good habit you created of saving will help you feel better about your personal finance situation. How do I know this you ask, because I have created the small habit of saving on a regular basis and believe me, when that unexpected car repair pops up, I can pay for it in cash. I don’t have to go into debt =) That makes me less stressed and creates mental positive reinforcement because of  the fact that my habit of saving makes me feel good.

You say, I don’t make enough to save anything… bad excuse. Cut out some of your expenses, how? Track your spending, see where you’re spending money on things you don’t need. If you need to start with $20 a month, it doesn’t matter start with anything, create this habit and you’ll thank me later.

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