Automation — Your Ace in the Hole

Everyone is talking about AI and how its capabilities to streamline and automate tasks will revolutionize the modern world, and they’re probably right.

However, that’s not the automation I’m talking about. I know of an automation that can supercharge your path to long-term wealth.

Automate your savings.

Simple enough, right?

How many people do you know that do it? Do you do it?

Most don’t.

The power of automation lies in the fact that it requires no human input, no emotion, it just does. The automation performs the task it’s assigned and voila!

The most common example of people “automating” savings, or putting their savings on autopilot, is their automatic contributions to retirement accounts; whether it comes out of their paycheck directly or is done through routine monthly payments.

I’d encourage you to take it one step further.

Imagine the power of capturing excess dollars, over and above what you need to live comfortably month in and month out.

Here’s an example of what that would look like:

Let’s say your household takes home $10,500/month. Now, we’ll assume after all your bills and routine expenses are totaled up, they add up to $9,000. In theory, that leaves you with an extra $1,500/month, though I’d wager it sure doesn’t feel like you’ve got an extra grand laying around at the end of each month, am I right? Regardless of the actual numbers in your specific situation, this is likely a feeling you can relate too.

Do you want to know the reason?

Brian Tracy explains the reason incredibly well in his book “The 100 Absolutely Unbreakable Laws of Business Success”. I will quote Law 52: Parkinson’s Law directly from his book.

“…no matter how much money people earn, they tend to spend the entire amount and a little bit more besides. Their expenses rise in lockstep with their incomes. Many people are earning today several times what they were earning at their first jobs. But somehow, they seem to need every single penny to maintain their current lifestyles. No matter how much they make, there never seems to be enough.”

Sound familiar?

I know it does for me!

I was as guilty as anyone before I started implementing what Brian begins to teach and what I will explain here in a moment.

Brian continues his teaching of Parkinson’s law with this concise explanation:

If you allow your expenses to increase at a slower rate than your income and you save or invest the difference, you will become financially independent in your working lifetime.

It sounds like common sense, right? We’ve all heard it! Spend less than your earn. Live within your means. Avoid debt at all costs. Blah, blah, blah….

Are we actually listening though?!

Brian finishes off his explanation of Parkinson’s Law with this principle:

If you can drive a wedge between your increasing earnings and the increasing costs of your lifestyle, and then save and invest the difference, you can continue to improve your lifestyle as you make more money. By consciously violating Parkinson’s Law, you will eventually become financially independent.

This is precisely the principle I’d like to drive home to wrap up my thoughts on automating your savings.

Returning to the example I gave before, imagine the difference in your wealth trajectory if you implemented what Brian shared there at the end. “Drive a wedge between your increasing earnings and the increasing costs of your lifestyle.”

If you were able to automate your savings in such a way that you could predictably and reliably get $9000, or even $9,500, deposited into your everyday checking account, life would be good, yeah? Bills are routine expenses are taken care of, plus an extra couple hundred bucks. The question then is, where’d the other $1,000–1,500 go? Right? Because the household brings home $10,500.

That is where the magic happens.

Any dollars over and above your ‘monthly nut’ stay in your Wealth Reservoir — for you to consciously utilize and spend strategically in ways that serve you, rather than needlessly spending those dollars on Amazon sprees and frappuccinos because “I have the money to treat myself” when it’s sitting in your checking account.

This Wealth Reservoir is a SEPARATE account from your day-to-day checking account. It can be a normal checking like any other at Chase, Wells Fargo, etc., only then you’d have to consciously go in there and transfer your “allowance” into your everyday checking month after month.

My clients and I use a tool that automatically deposits your chosen “allowance” on your chosen day so there’s no temptation to transfer more and you don’t have to remember to do it.

It’s all done for you, on autopilot. Ahhhh the power of automation!

This framework allows you to have ZERO guilt spending every penny in your checking account because you know you’ve saved first. The best part is, you didn’t even think about it. You got your $9,000–9,500 deposited and paid your bills, so hey, whatever’s left, go put it all on black if you want to! It’s not what I would do if I were you, but you’ve got $1,000+ that month added to your wealth reservoir, so you’re free to spend your monthly “allowance” however you’d like.

With discipline and framework comes true freedom.

Saving first, and having it automated, will pay dividends for you — both now, and in the future.

That is one of my superpowers. I help people create a game plan that ensures their financial success and legacy long into the future. If you’d like a plug-and-play system to help automate your savings and capture these excess dollars on a monthly and annual basis, let’s have a conversation.

You can book a call with me: here

If you are a business owner, I have about a dozen different ways I can help you optimize your financial life to ensure you’re keeping as many dollars inside your business and your family’s pocket, rather than needlessly giving those dollars to Uncle Sam and the big banks to use as they please.

I’d love to chat and see how I can help.

Here’s to your continued success!