Automated Wealth Accumulation

I just wrote a A Simple Guide to Financial Freedom based on my experiences with Financial Freedom. Consider giving it a read if you are interested in this topic.

Here is how to set up your wealth accumulation for success:

1) Send money to your investment platform every month

Every month, my bank automatically transfers money to my investment platform(s). The transfer happens in the first few days of the month — to make sure I prioritize this and don’t spend the money on other things.¹

2) Dollar-cost average your investments

Set up your investment platform to dollar-cost average (DCA) into your preferred investments. Easiest strategy is just a monthly investment that matches whatever you are sending from your bank.

And that’s it.

Set this up and you won’t have to lift a finger. Your wealth will grow all on its own.

For me, this system has been liberating. When it is running I know I am following my plan and moving closer to my goal every month.

I don’t have to debate how much, when, and where to save/invest. It just happens.

I’ve tried periods without running this system and looking back I can see I spent much more energy and time considering these things. Because it did not happen automatically, I often ended up investing less than I would have liked.

With this system running, the money is never in my spending account for long so I won’t be tempted. This is another important point: if there money in my account I tend to spend it. I can try to resist — but an easier solution is simply to remove the temptation.

It’s not that I have a big problem with spending. But there is just a tendency to match whatever is in my account. If there is a lot I’ll spend a lot. If there is a little, I won’t. And my happiness doesn’t change — I simply spend money on things I don’t need.

Set yourself up for success with a system like this. With a bit of patience you’ll see impressive results soon enough.