We all know we should pay ourselves first, but we don’t always do it. Well, now is the time to take 5 minutes and set up automatic investments and cross it off the list of things to do during the month. We always try to shrink that list, and this is something than can be done very easily.
This was the simplest financial process I’ve ever been through. There were very few options (which is a great thing), the directions were very clear, and a 10 year old could do it for you.
I use Vanguard, so I’m using that as an example, but I assume that most companies have similar settings.
First, I signed in, went to the automatic investments menu, and selected the investment I wanted.
Since I am contributing to a Roth IRA, it shows me the maximum contribution I can make for 2010 and how much I can still invest without going over the limit.
I selected the funding source, the frequency, and the start date, and that’s it!
It brought me to a review page, where I checked to see if the schedule was right, and that was it.
So now, instead of looking at my bank account grow slowly for a month or two and then withdrawing the excess all at once, I have my accounts doing all the work for me.