6Mon·

Automation is the key!

In my opinion, many investors (myself included) focus too much on how to collect that extra 0.x% return - instead of looking at the #savings rate, at least in the first few years.

Specifically, #automation helps here. The cash flow should be thought through as a process at the beginning of the year. The #multi-account system is totally helpful here.

Pre-set budgets flow from the salary account to several IBANs. Direct debits run in parallel, which are then used for the purchase of assets such as $VWRL (-1.12%) or $BTC (+0.06%) provide capital.

My question: what do your investment and savings processes look like?

13 Comments

Aktienmasseur@Aktienmasseur

6Mon

I agree with you. As soon as I receive my salary, money goes into my savings, food, vacation and investment accounts. I also work on increasing my savings rate and not on stockpicking. The biggest inpact is the amount of the savings rate and not necessarily the position held.

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Pope Donkey XXI@DonkeyInvestor

6Mon

I simply put in everything that's left at the end of the month. I have automation by investing in ETFs instead of individual shares

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opportunity_seeker_138@opportunity_seeker_138

6Mon

@DonkeyInvestor Can this also be fully automated (that ETF X is bought with the remaining funds)?

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Pope Donkey XXI@DonkeyInvestor

6Mon

@opportunity_seeker_138 with appropriate APIs and suitable software, certainly. So far, however, I am not aware of any possibility out of the box

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Marcel@di_marcello

6Mon

Same here. And I dont like to automate this monthly routine of distributing the remaining funds and buying the ETFs. It is actually very satisfying to do this.

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Smolka@Smolka

6Mon

Just like you, for many years.
Several accounts, everything is distributed directly at the beginning of the month. Marginal difference, I invest in the $VWCE:)
Let's keep going, I fully trust this concept.

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Solitair@Solitair

6Mon

I only have a small savings plan because of cashback and Roundup at trade Republic. Otherwise I throw something in as the mood takes me. If I can't think of anything better just put it in the ftse all world. My savings rate no longer has much influence anyway.

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PunktPunktKommaStrich@PunktPunktKommaStrich

6Mon

So N26 ? :D Actually, the month is already done with the numbers in my head before it has started. The bonus month, vacation month and Christmas month will then move more money.

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opportunity_seeker_138@opportunity_seeker_138

6Mon

@PunktPunktKommaStrich Would be conceivable, or C24.

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Sparfuchs@Reinecke

6Mon

If you automate this, why do you need it? More than one account? In my case, everything runs from the respective salary account to the national securities accounts and then it just continues there. But the reason for this is that I can invest directly in the USA and Germany because of my dual citizenship.

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Vinc3🚀@BlockBard

6Mon

I divide it up using the income distributor at C24. Salary comes in, then it's divided between the fixed costs pocket (everything goes out over the month here), call money account and vacation. Further sums go to TR, Bison and the household account for daily needs by standing order. So I can see pretty much exactly what I have every month right at the start. The only things that go out via the normal account are payments that only come annually (e.g. Amazon Prime, getQuin or something like that...)

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opportunity_seeker_138@opportunity_seeker_138

6Mon

But isn't the last sentence the "difficult" part? The annual car liability payment should also be saved in the budget - not too much and not too little, so that the remaining amount can remain invested.

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Vinc3🚀@BlockBard

6Mon

@opportunity_seeker_138 as the amounts of the annual direct debits are low, this works. I have this in tabular form on the screen

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