You remember those late night commercials starring Ron Popeil from Ronco, don’t you? Remember the Showtime Rotisserie? Do you have the catch-line for it in your head yet? That’s right “Set it, and forget it!” Those five words did wonders for the sales of Showtime Rotisseries!
But those five words mean a lot more than how you can cook a small bird.
“Set it, and forget it” should be a motto you use to cook your personal finances as well.
Let me show you three ways:
- Do you have a high yield savings account? Set up an automatic deposit so there is always some money going into your account. Forget about it and let the money earn interest and add up!
- Your company’s 401(k) plan – Set up at least up to the company match to be taken out of your check and put into your account every payday. You will maximize the company match (read: Free Money!) and you will contribute to your retirement money as well as get a tax break on the contributions. Then forget the money’s there! It’s not yours to use now, it’s for your retirement so you don’t need to keep checking it. As a bonus you might be able to set up your 401(k) to increase your percentage contribution every year. This way when you get that yearly raise a part of it is already going to your 401(k).
- Your IRA account – Find an amount that you can contribute every month and set up a direct deposit to your IRA account. Just like your 401(k) you’re gonna forget the money’s there and let it grow until retirement. Remember the maximum contribution for 2008 is $5000 (and you have until April 15th to max 2007′s $4000 limit).
Now Mr Popeil doesn’t really want us to completely forget what’s in his rotisserie, does he? The same holds true of your finances. You’ll want to check up on your 401(k) and IRA accounts to make sure you are properly allocated. As you get closer to retirement age you may need to change what your contributions are invested in (make sure to seek out a professional if needed).
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You can also check up on your savings. If you’ve built up enough of an emergency fund then you can consider other investment vehicles.
The point here is to let your money sit in these accounts and let them grow over time!
Do you have any other “set it, and forget it” personal finance ideas?
Related Posts: Roth IRA Goals Update
My 401(k) Is Killing Me, I’ll Never Retire
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{ 4 comments… read them below or add one }
I love set-it and forget it automatic savings deposits…
We have $300/month thrown in a MMA and when it gets to 1k we roll it into a higher yielding CD. We don’t see it for those few months and never, ever miss it. Gotta love it!
That’s the way to do it Dawn!
Didn’t Ronco have a pasta maker too? Man, I wanted one of those fancy things!
We have been on auto-pilot for a long time. Each week a certain portion of my Hubby’s paycheck goes into each of the following:401K, high yield savings, and a regular savings that eventually builds up enough to fund things like IRAs and family vacations. Each time he gets a raise, we up the ante and never miss a beat.
Ron Popeil, hilarious. Just too funny, really.
Take Care
LJ
@ LJ – Popeil makes all sorts of stuff. I remember the little fishing rod they had from watching TV during the day as a kid.
Sounds like you have a great auto-pilot plan!