Transcripts

Jane Bryant Quinn:
The fact is if you make your savings automatic then you will automatically be living on less. We all live on what we see in our checking account. If it comes out of our checking accounts and into our savings we forget about it, we live on what's left. That's what works for long term investing.

Jane Bryant Quinn, author of, Smart Simple Financial Strategies For Busy People says while you start your automatic savings plan you should also…

Get rid of consumer debt. Not your auto loan or your mortgage, those are things you have for a long time. But consumer debt is something you can get rid of and you can get rid of it through automatic payments. I'm a huge believer in paying off debt automatically, if you bank online you can set it up so that a fixed amount of money goes towards your debts. And you should pay a minimum toward your low interest debt like a student loan, and you should pay more than you think you can afford on your high interest credit cards.

Nothing works better than making consistent automatic payments to your debt, says Jane, and if you stick with it you'll be amazed at how fast your debt disappears.

And you don't have to wonder every month, "Oh, how much shall I pay, maybe I'll pay a little less, I have something else I want to do." You have to make these debt repayments anyway make them automatic that is what will work. That is what will reduce your debt.

At somethingyoushouldknow.net I'm Mike Carruthers and that's Something You Should Know.