HOW CAN AUTOMATING YOUR
FINANCES HELP BUILD WEALTH?
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TYLER KLUGE
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Media and Communications
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About This Episode
Building wealth does not always require making more financial decisions. In fact, constantly checking your investments, reacting to market movements, or deciding what to do with extra cash can create more opportunities for emotional mistakes.
In this episode of Healthy, Wealthy & Wise, Tessa Hall speaks with BWFA Senior Financial Planner Tyler Kluge about the financial habits that can make staying on track easier. They discuss what to automate, how often to review your investments, where to keep emergency savings, and why a well-designed financial strategy should not require constant adjustments.
Tyler also explains how regular planning conversations can help account for changing goals without abandoning a long-term investment strategy.
Learn how BWFA can help you build a financial plan that keeps you on track without constant attention. Explore our Financial Planning services or schedule a complimentary consultation to discuss your goals.
Frequently Asked Questions About Building Wealth Through Financial Habits
How can automating your savings help you build wealth?
Automating savings can help make consistent progress toward financial goals without requiring a new decision every month. Tyler recommends first establishing appropriate cash reserves and then considering automatic contributions to retirement plans, IRAs, brokerage accounts, or other investment accounts based on your goals. Automation can also reduce the chance that money intended for long-term savings is unintentionally spent.
How often should you check your investments?
How often you check your investments should depend partly on how you respond to market movements, but Tyler suggests that most investors do not need to check them daily. Constantly monitoring markets can create stress and tempt investors to react to short-term changes. He suggests that monthly may be sufficient for many people, while broader financial planning reviews can occur every six months or at least annually.
Does reviewing your portfolio mean you need to make changes?
No. A portfolio review does not automatically mean your investment strategy needs to change. Tyler explains that major shifts are relatively infrequent, while regular check-ins provide an opportunity to discuss changes in income and expenses, upcoming purchases, retirement withdrawals, or other financial goals. Those changes can then be evaluated within the existing long-term strategy.
How much money should you keep in your checking account?
The appropriate amount depends on your spending and financial situation. Still, Tyler suggests roughly one to one-and-a-half months of expenses as a general guideline for a checking account used to pay bills. Additional emergency savings may be better suited to an account that earns a competitive rate, such as a high-yield savings or money market account, while remaining accessible when needed.
Why can paying less attention sometimes make you a better investor?
Paying less attention can reduce opportunities to make emotional decisions based on short-term market movements. Tyler points to periods of rapid market declines followed by sharp rebounds as a reminder that reacting to a single difficult day can interfere with a long-term strategy. The goal is not to ignore your finances, but to combine intentional reviews with a strategy designed to withstand normal market fluctuations.