Automatic Investment Plan: How to Secure the Future

automatic investment plan

The Automatic investment plan (AIP) allows investors to choose a platform or system to contribute towards their short, medium, or long-term financial goals and obligations. This allows you to contribute money on regular basis to invest in achieving the purpose. In this system, the money can be deducted from an individual’s account automatically from a scheduled payment received.

One of the challenges we hear is that investment is difficult. Many people are just taking money and using it immediately. They complain that the economy is tough. How then do you make investment easy?

There is a recent survey that indicates that about 65% of people of working age find it difficult to invest. To make things easy, an automatic investment plan will be prudent for you. Others are never interested to hear about investment but just interested to spend.

Buying luxury to impress society is the hubby of others forgetting time waits for no man. Under this program, you make payments periodically into an investment with automated deductions. Contributions are made under predetermined intervals.

This will help you to invest without the temptation of spending money consistently. An automatic investment plan helps you to keep consistent income as seed capital for a purpose. You have to learn and know the various types of automatic investment plans to help you make the right choice.


What is an Automatic Investment Plan?

It is an investment plan that is automated on the paycheck for the people to make without the temptation to stop. Under the plan, the amount is determined from the person’s account periodically based on the agreed terms with the investment or financial institution.

This system allows the investor to transfer specific amounts automatically from his or her paycheck account periodically. The system withdraws the temptation to spend and makes investments easily.

People can do this by setting up direct debit or payroll deduction of their paycheck into their investment account. The system allows you to set up your investment plan without personally sending money into your investment account.

What makes it the best is that the investor will not get even the money sitting in his account to spend. He rather spends it on investment. This can be a plan towards your retirement for the benefits of old age and other complications.

Why do you need an Automatic Investment Plan?

This system allows you to avoid the prodigious spending of your paycheck. Do you know that almost 75% of workers spend all their funds before another salary hit their account?

This is what can help you plan towards your retirement and family income for permanent total disability, untimely sickness or death, and other future financial obligations.

The best and easy way to track your old-age investment is to set up an automated plan. This is like gathering your resources in a secure way for future use. Take advantage of it now as you are in active service.

There is a saying that “if you fail to plan, you plan to fail.” Be more modest and prudent with your finances. Many friends can fail you when you are in need. Keep some of your funds down no matter the amount for unforeseen.

Let us have a look at some of the benefits of automating your investment.

It helps you to get funding for different projects

It is very difficult now to take a loan to complete your dream project because the interest rate is high. In Ghana, for now, the interest rate on loans is around 32% and this makes it difficult to take some. It makes the worker impoverish when paying back the loan with the interest.

The best way to get your seed capital is to start small by setting up this investment plan. Keep your investment intact and avoid withdrawing from that fund for short-term plans.

Read: How to make money by solving a problem

It Helps You to Plan for Your Family

There is always a challenge with savings for married people. Having an automatic investment plan will help the family to save for future purposes. This will help both of you to have plans for your retirement and other plans.


It saves you Time to Invest

Because this is a strategic plan, it eases your way to invest your money. The system keeps you from the stress to transfer money always into your investment plan. You will not have difficulty to be investing every month.


It Helps you to Avoid Unplanned Budget

It is easy to get involved in impulse buying. Having automated your investment helps you to avoid getting into an unplanned budget. When you automatically invest your money, it helps you to avoid any wrong buying.


This Plan Helps you to avoid Ponzi investment

If you choose your own reliable investment, you are more likely to avoid any Ponzi schemes out there. People choose to invest in Ponzi because they have no alternative and others want to make quick money for their long-term plans. When you choose this plan, you will be able to avoid that temptation.


It can be your funding source

Saving through this investment plan can be your best source of funding for your projects. Start small and be consistent with your project. Start now and get the funding source for your project in the future.


How Can One Start an Automatic Investment Plan

Start Direct Debit

One of the easiest ways to start to get it done is to set up a direct debit to your salary account. You can contact your employer to help you set up one for your investment.

You can equally set up a direct debit through your bank to avoid the temptation of spending the money.

Let them set u with a date to help you avoid the temptation to spend your money. It is very easy to get it done when you approach your bank. They will give you a form to fill out and state the date for the deductions.

Select the Percentage you want them to deduct

If your salary is enough or not, make sure you set up between 15% and %20 of your paycheck. It is better you take a good look at your take-home pay before setting up this system. Make sure you set up a percentage but not actually an amount. Be consistent in your investment.


Ask Your Bankers or Investment Company

Ask your investment company about the best way to get your money into the investment you choose. You can equally ask your bankers how they can deduct your money for your investment.


Consult Invest Investment Experts

There are people that have good knowledge of investment. They will get you the possible ways to get your investment done. The professionals will get you to take the right investment. Get them on board on how to invest, the percentage to invest, the period of payment, and the best investment platform.


Payroll Deductions

Your employer may deduct your money for the purpose before the remaining hit your bank account. Discuss with your employer to do the deduction on your behalf. Get the percentage to be deducted from your investment.


Free tips on Automatic Investment Plan

  • The purpose of the automated deduction is to help you avoid any spending that will lead you into financial distress.
  • You can get the source of funding for your projects without taking a loan from an external source.
  • The automated system can help you plan for your retirement.
  • It can help you avoid the temptation of not saving for your family’s welfare.
  • It is the way to build wealth with periodic deductions.


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