Recurring Contributions | A Simple Tool to Help You Hit Your Financial Goals
January 28, 2020
Making a plan to achieve any goal can seem overwhelming. By breaking the goal down into doable steps, you are able to mark your progress and before you know it, you are on your way towards hitting it. The great news is that this process, which many are familiar with for achieving personal and business goals, also works for financial goals. And, there are some key tools available to help you.
Set a budget that works
Saving money can be difficult. For most, this starts by coming up with a budget that works. Yet for many, the challenge is not setting the budget, but sticking to it. One tool, recurring contributions, can help us to avoid spending temptation and stay on course, and budget, by automating the savings process and allocating money against your pre-planned goal.
What are recurring contributions
Recurring, or automatic, contributions is a simple tool to help you reach any of your financial goals, whether it be saving for a downpayment or school, or investing for your retirement. They allow you to preset your contributions on a schedule where you choose the frequency and value. This enables you to stay on course to hit your goals without spending valuable time manually contributing.
The great thing is that recurring contributions can be customized on a schedule that fits your budget and goals. Most commonly they are set up monthly, or semi-monthly to align with the cadence of your paycheque. Contribution values can be adjusted as your income or budget changes.
Increase your savings rate
When you put together the power of recurring contributions with compounding, you will find something magical happens - you can increase your average savings rate up to 3x! Which, when you think about it, makes sense. By investing your funds sooner, they will have more time to build interest and returns. Recurring contributions also align well with some well-known investment strategies, including dollar-cost averaging (DCA).
Setting up a recurring contribution is simple with Voleo
Voleo offers recurring contributions as a feature to all of its members. When new Investment Clubs are started, the founder can suggest recurring contributions both in frequency and value to its members. Individual club members may customize their own contributions at any time.
To learn more about how to set up recurring contributions with Voleo, check out our #FeatureSpotlight.
Looking for a new way to manage your Investment Club portfolio? Download the Voleo app and manage your Investment Club for free.
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