The latte factor in reverse: the power of automating money

What is 'real' savings anyway?

 

This year has been a SPENDY one.

I’d been saving for the kitchen renovation for a long time, but it still stings a bit to fork over all that cash, you know? Even in dribs and drabs (particularly as our cabinetmakers don’t take credit cards – so many unearned points there…)

But even through all that, coming out the other end, I’ve been reminded of the power of automated savings.

Thanks to automation, the extra I’ve built up that I would typically put toward extra mortgage principal, I’ve been able to direct toward the kitchen overage.

The $100 I invest every month (on top of my retirement contributions) is slowly growing.

And the extra superannuation my company contributes is also adding up rapidly – it’s an awesome benefit I can’t rave enough about.

Whether it’s $50 a week, a $100 a month … if done consistently, it all adds up – $2600 a year, $1200 a year, and when you’re not looking at those accounts very often, it’s a nice surprise when you do check in.

It’s almost like flipping the latte factor (which you all know, as a non-coffee drinker, I freaking hate) on its head – these little amounts might not feel like they’re worth anything, but over time it’s a different story.

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