Tips to Automate your Investing and Savings through Habit Stacking

Habit stacking is a productivity and behavior-change technique where you link a new habit to an existing one, making it easier to remember and adopt.

The idea is simple: instead of building a new habit from scratch, you stack it onto something you already do consistently. Multiple stacks can be considered your daily routine but sometimes the habits can be quarterly or linked to an event occurring.

A fun way to automate your investing or savings is through habit stacking. This way, you’ll always be reminded of the importance to invest your money - plus, you’ll mine for opportunities that trigger your investing behavior. Here’s a few top examples from the Wealth Elf, and if you’re looking for strategies to put your investments on autopilot look no further.

Savings:

• After getting paid, transfer a set amount to your savings.

• After making coffee at home, move $5 to savings (you’ll never want Starbucks again).

• After you cancel a subscription, transfer that cost to savings. See here for some of our favorite memberships that will save you money

• After receiving cash back or rewards, save the full amount or pay down your credit card.

• After brushing your teeth, review where you are in the 7-day week against your savings goal.

• After packing your lunch, transfer $5 into a “no-spend” day jar. Also, check out 11 Crazy Ways to Save on Groceries.

• After opening your work laptop,→ review your planned expenses for the week.

• After every virtual meeting,→ unsubscribe from one promotional email (less temptation to spend).

• After dinner, spend 5 minutes meal planning or prepping — reduces food waste and saves on groceries. Also, check out Wealth Elf’s ultimate guide to meal prep.

• Before hanging out with friends, aim for a rule of FREE activity in between each dinner, drinks or concert out.

• For every uber ride, commit to walking or public transportation instead

• Before your weekend grocery trip, scan your pantry and plan meals — Avoid unnecessary purchases.

• Every time it rains, collect rainwater for gardening to save on your water bill.

• Every month when the calendar changes commit to DIY upkeep on your home to save on expensive future repairs. Clean your gutters, sweep your garage, deep clean and clear all sink and bathtub drains or seal windows and doors to prevent heat or cold air loss.

• After back to school season is over, buy your materials for next year at a discount.

• After the holiday season in December purchase next years winter coats at a discount

Investing:

• During commercials while watching TV → Open an investment app and review one stock or fund. You can check out Wealth Elf’s favorite recent investing moves here.

• Each payday allocate a dedicated amount to your brokerage account. Find some of our favorite investing apps, here

• When you close your laptop at the end of the week review the stocks that made the greatest loss or gain for the month and past 6 months. Consider selling off or invest in those opportunities if these index funds or stocks are usually stable long term holds.

• While folding laundry → listen to a short finance podcast.

• After date night, match the total amount you spent to an amount transferred to your investment account

• Ahead of back to school season, teach your kids about the importance of delayed gratification through the perspective of compound interest

• Each week after church (if you attend) match your donation to the church to equal the amount you transfer to your brokerage account

• Before splurging on a family vacation, reshuffle your 401k allocation to ensure you’re yielding the highest returns possible and as always, use your miles! Our favorite loyalty programs are here.

• Reduce one self care habit per month and put the monies towards an investment. At twelve months compound interest on your savings, you’ll have paid for a few of your future self care treats just in interest!

  
  

Did any of these ideas spark some creative thinking?

Let us know your favorite hacks and habit stacking tips at @Wealth_Elf