Automatic Plan - Whatever it is...

I've decided to automate my finances as much as I can, following David Bach's Automatic Millionair book. I've read David's book a while ago, and I thought it was the most simple, yet, very easy to follow ways to increase my networth to my first million.

I've been trying to "time the market" when it comes to investing, even though back of my head believed that I can't time the market. Therefore, discipline methods to my madness is required. This David's way is one of the best "discipline" method when it comes to investing.

Well, thinking it is easy is one thing...putting it into an action is another. Only auto pilot financial item I have going is my 401k plan. Applying this experience, I have decided to automate few financial items first.

Automatic plan remind me some guy from infomercial saying "Set it, and forget it". I won't forget it, but at the end of each year, if certain accounts needs rebalancing, that's what I will do.

1) Automate my Roth IRA to match my direct deposit, which is every two week. This mean, every other Friday when I get paid, automatically, I am putting $200, which by early January of 2008, it should max out my Roth IRA Contribution. This auto draft into my Vanguard Roth plan. This goes for both my account and my wife's account as well.

2) Automate mortgage payment, with 1/12th additional payment at the end of the month from my checking account each month. This way, at the end of the year, it is equivalent to making one full extra payment. This should increase equity value of my house.

3) Automate my son's 529 contribution. Make $150/mo contribution to his 529 account.

Man, 3 main things I had to automate...it took total of 30 minutes to automate above 3 items. 30 minutes. Why didn't I do this earlier?

I believe anything that will increase your networth, automating your finances will definitely help anyone get to where they need to be.