One of my favorite ways to suggest that people look at the concept of saving and investing is what is typically referred to as an automatic savings plan (if it is transferred into a savings account or, if into an investment account, an automatic investment plan, or AIP. Simply stated, an AIP is an automatic transfer from your checking account into your investment account each month.
Michael Rubin from About.com did a good article recently that explains what AIPs are all about: Automatic Investment Plans
I like to refer to AIPs as “unconscious saving”. The exact opposite and what often gets in the way of our financial success is what I disdainfully refer to as “unconscious spending” – throwing money away unnecessarily. Sure, we all know better, but spending money on ATM fees, account maintenance fees, overdrafts – it’s just crazy!
A good article on the typical ways we often waste our hard-earned dollars comes from Erin Burt at Kiplinger.com: Wasteful Spending
Repeat after me: savings = good! Spending = bad!
Of course, if it’s that easy, everyone should be doing it. Hey – wait! It IS that easy!