Jo inspired this post today… I think I’ve actually posted on this before…not sure…
A few years ago, a friend of mine *my boss at the time* hipped me to this book:Â The Automatic Millionaire
The Automatic Millionaire is basically a “How-To” on saving funds that you would otherwise *throw away* to compound interest and save for your future.
As soon as I got through the first chapter, I was pretty much sold. lol. I had an ING Direct account already, but this book inspired me to start automatically saving under the latte factor. The latte factor pretty much gives you a “starting point” as to how you can save. For example, if you’re an avid Starbucks drinker who needs that daily cup of crack, and maybe a lemon loaf…or a blueberry muffin *if ya nasty*…you’re “throwing away” about $5.00 – $7.00 a day on your latte. This money can otherwise be put into a high interest savings account and be put to work for YOU!
Okay, so my issue *at the time* was…shopbop.com.Â Every time a new line was launched, I was itching to get my fingers on a cute shirt, or pair of pants. This was my latte factor. Instead of spending the money on the shirt, I’d simply put the money that I would have spent… into my ING Savings account.
Well…that kind of didn’t last long, because I simply stopped going to shopbop.com *unless there was something I wanted to look especially cute for*.Â So, every Friday, I’ve scheduled ING Direct to pull about $30.00 USD out of my bank account into savings. And now that I’m used to it just not being there, I don’t even realize that it’s gone.
Same thing with my 401k. When I was working in the Corporate world a few months ago, I had my 401k set up and I was contributing at 12% per pay period, which was fine. And now that I’m not in the corporate world, I still have it set to pull a good amount of money out of my bank account every month. I gotta retire sometime.Â I just don’t want to be broke when I do.
Yeah, it’d be great to win the lotto. I can’t front. I still play Mega Millions…lol. But until that happens, and while I’m still outsourcing my life, I’ll just go ahead and let ING do the dirty work.