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moneysense.ca, 7/11/11
Pay yourself first
Start thinking about your future and implement automatic payroll deductions to help you get there
Current issue:
Plan for the future and set up an automatic payroll deduction that will whisk away 5% to 10% of your paycheque before you ever see it, and deposit that amount in a good, low-cost mutual fund. Soon, with no effort on your part, you’ll have a healthy nest egg.
Why does this trick work so well? Because most people find it hard to save money by sticking to a budget—it’s just too tempting to spend what’s left over. But if you make saving an automatic first priority, you quickly adjust to living on the cash that remains.
moneysense.ca, 7/11/11
I've been doing this for 18 years since I read David Chilton's book The Wealthy Barber. I now have over 1.5 million dollars built up. This works nicely during down markets as more equities can be bought at lower costs.