The easiest way to save is NOT by not spending.
But Rick, you talk about not spending all the time! What gives!?
Look, saving money by reducing the cost of your lifestyle is still very important, but it’s not the low
hanging fruit.
The low-hanging fruit is saving all the money you never see.
If you never see it, you don’t get used to spending it.
And if you don’t get used to spending it, then you’ll never have to get used to NOT spending it which is
the hard part.
So where is the low hanging fruit?
It’s built into your employee benefits.
1. Max out your 401k2. Max out your Employee Stock Purchase Program (ESPP)3. Save your bonuses
and/or RSU grants4. Max out your HSA contributions
You can save $19,500 in your 401k straight from your paycheck without ever laying your hands on it.
Your ESPP contributions max out at $25,000 per year. You’ll have to touch the money a little when you
sell the stock after each purchase period, but it should go straight into your Financial Zen Funds (aka
long-term portfolio).
When you get your bonus or when your RSU’s vest, immediately push it into your FZ Funds.
And lastly, if the family’s healthy and you’re not expecting any big medical bills, use the HSA Strategy we
discussed last week and max out your HSA contributions. Just like your 401k, they’ll be transferred
straight from your paycheck.
All four of these are super easy ways to save every year without feeling like you’re sacrificing anything.
