What if I told you there was a way you could save without budgeting and that you could become a millionaire regardless of how much you earned?
Well there is a way and these 2 apps make it really easy. They are so useful in fact, that you won’t even notice the money being saved!
The Automatic Millionaire
The Automatic MillionaireI’ve just finished reading the book ‘The Automatic Millionaire’ by David Bach (a Financial Planner in the US). I thoroughly recommend this book if you’re serious about wanting to save and get rid of debt.
The books really small, gets straight to the point and won’t take long to read.
Spoiler alert!
In the book David introduces us to his clients Jim and Sue McIntyre. They were in their 50s and had never earned more than $40,000 per year. They came to see David for some help with their retirement plans.
After initially being skeptical David was astounded to find that they were millionaires and could easily retire and do everything they wanted.
What was the secret?
Automating their savings!
We’ve all been there when it comes to saving. With the best intentions we set our budget at the start of the month, have a figure in our mind that we want to put away into savings but then life gets in the way. There’s always an expense you didn’t factor in, an impulse buy you weren’t expecting to make and before you know it you get to the end of the month and there is no money left for saving.
If this is you, the problem is you are not paying yourself first.
You are paying the government (in taxes), the landlord, mortgage company, utility companies and shops before you pay yourself!
For most people budgets don’t work. They can be too complicated to set up, take too long to manage and frankly are just a bit boring.
Other people think they don’t earn enough to save and become a millionaire. But saving just £5 a day, for 5 years, earning a 6% a year investment return could be worth over £10,500 in 5 years time!
In 25 years time over £100,000!
Want to know how much you need to save to become a millionaire?
You don’t have to earn much to save, it just needs to be automatic.
Automating your savings
So what do I mean by automating your savings?
Well there is the version where you set up a standing order from your current account into your saving/investment account. You need to do this on the day or day after you get paid so you pay yourself first!
Or for longer term saving ask your employer to increase your pension contributions, deducted straight from your wages. Your employer may even match it so double boost to your savings!
But I want to introduce you to a different way.
#1 Chip
This app will securely connect to your current account and will use some clever technology to work out how much it thinks you can afford to save every few days.
It will then automatically move this money into your chip account.
The money it saves will sit in an account hosted with Barclays.
It will alert you to the saving it is about to make so you can still say no and you can also take the money out of your chip account at any time.
The downside is that you don’t earn any interest on the savings although you can earn up to a 5% bonus if you invite 5 friends to use the app.
Chip could be ideal for those short term savings, money you are going to want in the next year or two.
#2 – Moneybox
This app again connects with your current account and then each time you spend it will round up the spend to the nearest pound and deposit the extra bit into an investment account.
So if you spend £2.40 on coffee it will deduct a further 60p and invest it for you.
There are 3 different investment strategies to choose from, cautious, balanced or adventurous.
Moneybox could be ideal for longer term saving with the opportunity to earn a greater return albeit taking a risk with investments.
Easy, simple
The great thing about these apps are that they automate your savings. You haven’t got to think about anything and this is the best way to save.
No budgets, just stick your savings plan on autopilot and let it do its job. You won’t even notice the money gone. Easy, simple.
Best of all you can then go and spend what you want without worrying about trying to save a bit at the end of the month because your saving has already been taken care of!
Question:
Do you struggle to save? What’s holding you back? Join the conversation here.
What if I told you there was a way you could save without budgeting and that you could become a millionaire regardless of how much you earned?
Risk warning:
Stock market linked investments and any income from them, can fall as well as rise and is not guaranteed. Any figures quoted are for illustrative purposes and should not be taken as a forecast or guarantee. Past performance should not be seen as an indication of future returns and clients may get back less than they have invested.
