After my divorce from the gambling husband and after I paid the outrageous tax bills, my nest egg was almost depleted. But I had a few properties that paid rent every month.
One of the first things I did, when that rent came in, before I spent a cent, I immediately put a portion of it into savings. Otherwise, I knew I’d spend it all.
And I did it automatically. It was so simple. I filled out a form and the bank automatically transferred money from my checking account to savings. The amount was small at first, but it added up quickly. I didn’t even have to think about it.
Automating gave me discipline without having to work at it. It’s easy to say that you’ll move money monthly into savings. In practice, however, it just doesn’t happen. You forget. You overspend, You have a hundred excuses.
But by automating, you don’t miss what you don’t see. This was the beginning of my creating really good financial habits—habits I still practice today.