The new year is here and we want to help you start it off in the best way possible. In these 6 weeks, we’re coming to your ears (and inbox) with a 6-step plan to help set you up for investing success in 2023.
What we’ll be covering:
- Where to start with your money
- Should you invest your emergency fund?
- How to supercharge your superannuation
- Common mistakes and how to avoid them
- The stocks and ETFs to build your core portfolio
- Automate your investments and get on with the year!
6. Automate your investments and get on with the year!
In this week’s ep, (final one in the series) we talk through *exactly* what to do when money hits your bank account. How we divvy it up, and where we automate it to go!
Action 1
- This is an essential step – have separate savings accounts for specific uses eg: a holiday savings account, a rent/house deposit account, an emergency account etc.
- Once you set up automatic transfers to these savings accounts, you’ll know exactly how much you have left for your everyday expenses and investing.
- We like to set up the automatic transfer the day after we get paid.
Action 2
- Once you have set up automatic savings transfers, you can work out what is left to invest.
- Most brokers have an automatic transfer system – send your investing money to your brokerage account.
Action 3
- Once the automatic transfer to brokerage is set up, the final step is automating the investments.
- Many brokers will let you set up automatic purchases for the stocks/ETFs you pick once the money arrives in your account.
- You can do this however frequently you want – weekly / monthly / every few months etc.
- Sit back and relax. Let compounding do the work for you!
A few other resources to help you…
- This article talks through automated investing and how it works. See for yourself whether it is worth doing…
[How automated investing works]
- This article talks about paying yourself first. It provides three ways you should consider automating your finances once you’ve been paid.
[See the 3 automating options here]
This is an excerpt from our Get Started Investing Newsletter email. Once a week, for those , we’re featuring some of the most interesting content we’ve come across in this weekly email. No spam, we guarantee.