Thread by @BCommerceLLC

How to put your finances on AUTO PILOT and get on the path to financial freedom:

THREAD

The benefits of the practices below are endless. You will spend virtually 0 time on bills, savings, and investing once these are set in place. You will be consistently growing your retirement, savings, and general investment accounts without doing anything.

First things first, your checking account probably sucks. Get an investor online checking with Charles Schwab, no ATM fees, and they pay you a small amount of interest (I bet you’re getting 0 right now)

Next put all your income into this account. If you have a 9-5 this will most likely be every other Friday.

On pay day, schedule a recurring transfer to your brokerage account and a recurring purchase. I recommend a cheap index fund with exposure to both domestic and international markets.

If you are not already. MAX out your Roth IRA every year. For me this is $6,000. So I contribute $230 every other Friday. You will catch the ups and the downs, and not have to worry about buying and timing.

I recommend Vanguard Target Retirement Funds. These are cheap and automatically re allocate their portfolio as you get closer to your “target date”

The thing is you aren’t going to beat the market over 20-50 years. Throw it into these funds, paying super low fees, and lose the stress of active trading.

Time in the market > Timing the market.

Rent/mortgage: Pay half of it on payday with a recurring transfer. This will keep your funds more consistent throughout the month instead of having to make a lump sum payment once a month.

Emergency Savings. Right now these aren’t the best as far as rates go, But you need to have money available in a pinch. Think 2-3 months living costs. Marcus by Goldman Sachs pays you market interest rates. Set up a recurring transfer on pay day to build this up.

Credit Card. These are a tool, and need to be used responsibly. I have the Citi Double Cash card. 2% back on all purchases. But you need to pay it off every month. A credit card solves short term liquidity issues, and cash back is nice, especially for flipping.

Use this card for any bills you can as well so you can capture your cash back. Then use your checking to pay off the card. This can add up!

If you have any other loans, like a car payment, I can’t stress enough the importance of spacing out smaller payments throughout the month. It’s much easier to have a recurring transfer every week or 2 and have more consistent cash flow.

On this note. Any loans that you are paying 8% or higher interest on, move to the front of your priority list. This might mean adding a side hustle to pay it down, or contributing less elsewhere.

Mint by Intuit is a fantastic tool to see all your accounts and assets in one place. You’ll have reminders for bills, etc, but you won’t need them because you’ve set up auto transfers for all bills.

If you’re into riskier trading, or a niche, or crypto. What I recommend is invest 90% of your funds in index broad market funds, and do what you want with the other 10%. You get to have fun, and you know the majority of your money is consistently growing.

Lastly, get yourself a side hustle. After saving and expenses, you may be lower on discretionary spending. It’s a lot easier to add some extra revenue than it is to cut costs on Starbucks. I recommend flipping products on eBay and Amazon.

This can be a 5 hr/week or a 50 hr/week commitment. And it’s all on your own time. You can start with $300 or $3,000. PFP has everything you need to get started. Reach out with any questions you may have.

gumroad.com/a/797176947

That’s it folks. Message me with any questions or clarifications. It’s a bit of work to set it all up, but then you don’t need to do a damn thing afterwards.