Set It and Get Rich: Your 2025 Playbook for Automated Wealth Building
Learn how to seamlessly automate your paycheck this step-by-step guide using Chase, Fidelity/Vanguard, and HYSA accounts.
Automating your paycheck investing is one of the smartest ways to build wealth effortlessly. By setting up a system that automatically directs portions of your monthly paycheck to different accounts for investing, saving, and expenses, you eliminate the need for constant decision-making while ensuring your financial goals stay on track.
In this post we explore a step-by-step guide to doing this using Chase for Checking Accounts, Fidelity or Vanguard for investments, and Ally for savings.(You can use any bank you work with. I listed the above banks because I personally use them for my portfolio.)
We will also continue with our example of Sameer who earns $350,000 as his annual salary and has monthly expenses amounting to $120,000 annually.
Step 1: Understand Your Budget
Before automating your finances, map out your income and expenses. Divide your paycheck into three primary categories:
Investments: How much will go towards building your future wealth?
Savings: How much will you set aside for emergencies and short-term goals?
Expenses: How much do you need for monthly living expenses?
We will continue with our previous example of Sameer from our previous post.
Expenses: Sameer monthly expense comes out to be $10,000.
Investments
Sameer invests $5,813 into 401K and Roth accounts.
Sameer invests the $5,000 into into a low fee index fund.
Savings: The remaining $230 money.
Step 2: Set Up Your Accounts
Chase Checking: This is your primary account for which will be used for managing everyday expenses.
Fidelity/Vanguard: Use these for your investment accounts, such as brokerage, IRA, or 401(k) rollovers.
Ally Savings: Ideal for your emergency fund or short-term savings goals due to its high-interest rates. Additionally, any amount not allocated to investments or checking accounts can be deposited here.
Step 3: Automate Your Direct Deposits
Most employers allow you to split your direct deposit into multiple accounts. For Amazon employees, ADP allows you to direct paychecks to multiple accounts. If your employer offers this feature:
Allocate a portion of your paycheck directly to your investment account at Fidelity or Vanguard. Schedule an automatic transfer from ADP to Fidelity.
Send another portion to your Ally Savings account for your emergency fund or specific savings goals. Schedule an automatic transfer from ADP to Ally.
The remainder of your paycheck can be deposited into your Chase Checking account for day-to-day expenses. Schedule an automatic transfer from ADP to Chase.
If your employer doesn’t allow splitting deposits, you can manage this through automated transfers first into a checking account and then scheduling automatic transfer from checking to the above accounts.
Step 4: Set Up Investment Contributions
Now that you have your paycheck contribution into Fidelity/Vanguard its time to setup an recurring investment that will invest this money into an index fund.
Automate Contributions on Fidelity/Vanguard:
Log into your account and set up recurring contributions from your Chase Checking account.
Decide the amount and frequency.
Choose your investment funds (index funds like Vanguard’s VFIAX or Fidelity’s FXAIX are great low-cost options).
Below is a screenshot on how to automate on Fidelity and Vanguard.
Step 5: Monitor and Adjust
Review your system every 3-6 months to ensure it aligns with your financial goals:
Savings Rate: Are you saving enough in your Ally account for emergencies and short-term goals?
Investment Growth: Check your Fidelity/Vanguard account to ensure your contributions are on track to meet your retirement or investment goals.
Budgeting: Use Tools like Fidelity Full View, Chase’s built-in budgeting feature or third-party apps (e.g., Monarch, Quicken Simplifi) can help you.
The Power of Automation
By setting up automatic paycheck investing, you:
Eliminate the temptation to spend before saving.
Consistently build wealth through regular investments.
Achieve peace of mind knowing your financial goals are on autopilot.
Take the first step today and watch your wealth grow with minimal effort!
Investment Disclaimer: The information presented here is for educational purposes only and does not constitute financial, investment, tax, or professional advice. Investments come with inherent risks and are not guaranteed; errors in data may occur. Past performance, including backtest results, does not guarantee future results. Please be aware that indexes serve as benchmarks and are not directly investable. All examples presented are purely hypothetical. Conduct your own thorough research and seek professional advice before making any investment decisions. Commissions may be earned from the links above at no extra cost to you. By using these links, you help support the channel. Thank you for your support.