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It is important not to put all of your paycheck into a checking account. A fail-safe way of doing this is
to set up both a checking and a savings account.
Have your paycheck automatically deposited into both your checking and savings accounts. To figure
out what amount goes into checking and what amount goes into savings, you need to develop a budget
(see principle 13).
You should keep enough in your checking account to pay approximately two months’ worth of all your
bills. Include a little more if you are going on a vacation or know of a significant payment you will
soon need to make.
Believe it or not, this results in habitual savings. You don’t have to think about it every two weeks.
The forced savings just happens. If you don’t do it, you will end up spending the money somehow.
The next key step is to periodically invest the savings you’ve put into your savings account (after
accounting for your emergency fund). How often depends on the amount you save. The first two to
three years of your working life, you should do it annually. After that, find something you can invest in
monthly (e.g., a mutual fund).
Keep this savings account throughout your adulthood, and you will see your savings grow as your
income grows.

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